A contract is a law that governs the affairs of  the agreement. 

An agreement is between two or more parties  regarding a matter. The term of contract is  more specific while the term agreement is  more general. Only agreements that have the  proper contract have legal implications.

QUESTION: 

Is it important to have contract with your  business partners?  

ANSWER: 

The original purpose of the partnership  agreement was to protect both parties from  problems in the future. In the early stages of  business, you may think this is trivial, and the  contract can be drafted by yourself. 

However, if an issue arises in the content of  the contract in the future, what actions you  can take? The issues could include breach of contract between partners, percentage of  ownership and distribution of profits & losses  and so on. 

Hire a lawyer to draft your contracts for you  for peace of mind.  

5 BASIC THINGS YOU NEED TO KNOW WHEN  SIGNING A CONTRACT 

1. Signature and date: By signing the  document, it binds the party through  the contract, even if you not read the  document. 

2. Do not sign any draft contract: If you  have not finalized the contract, do not  ever put your signature on any form  

of draft contract that you send or  

receive. 

3. Make sure you read all the  

attachments: It is better if you  

understand all the contents. 

4. Always ask for one (1) copy of the  contract: Ask for a copy as a  

precaution. If only one party owns the  contract, there is potential for fraud. 

5. Signature of each page: Signature in  all pages of the contract is very  

important especially if you do not  receive a copy of the contract.

Breach of Contract?

An action can be taken against the breaching  party under civil law. The claimant can seek  damages if the breach of contract and all the  elements of the contract can be proven. 

The contract must be submitted as evidence if  your case is brought to Court. All transactions  and other documents related to the contract  are also important evidence. ]

QUESTION: 

If the Company is sued or wants to sue an  individual or the Company but unable to  appoint a lawyer, can the Company be  represented individually? 

ANSWER: 

Generally, no! Rule 5 Rule 6(2) states that a  corporation may not initiate or continue any  proceedings except through a lawyer. 

TERMINATION OF PARTNERSHIP CONTRACT  

The partnership contract can be terminated  through three (3) ways:  

1. Dissolution on its own:  

a) By expiration of a fixed term;  

b) In the event of death of a partner or a  partner is declared bankrupt;  

c) When a partner act to allow his shares in the partnership to be mortgaged for payment of debts.  

2. Termination by notice.  

3. Dissolution by court.

Need legal advice from Liyana & Co? But you  live outside Klang Valley? Don’t worry, appointment with our lawyer can be done in  three (3) ways: 

• Phone call 

• Online meeting (Google Meet/Zoom) • Meeting at our office 

Our lawyers have 10 years of experience in  solving complex legal problems for people. 

“Your Lawyer & Rescuer” 

 Contact us at:  

https://wa.me/60123640086

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