Contract Vs Statute Precedence

Summary

In Malaysia, statutes generally take precedence over contracts, but there are exceptions where contractual terms might modify statutory obligations if allowed by the statute. In debt recovery, the Contracts Act 1950 and specific banking laws like BAFIA guide general principles, but statutory requirements must be adhered to unless explicitly permitted otherwise. A collateral contract is a secondary agreement that exists alongside a main contract, often used to induce a party to enter into the primary contract. If someone acknowledges a debt or makes a payment, the right to take action starts from that date. Paying part of the rent or interest doesn’t extend the time to claim the rest, but paying interest is treated as paying part of the main debt.

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debt recovery by a bank
For debt recovery by a bank in Selangor, here are some key points to consider:
- Banking and Financial Institutions Act * (BAFIA): Governs banking activities.
- Contracts Act *: General principles of contracts including debt recovery.
- Bankruptcy Act *: Procedures if debt leads to bankruptcy.
Could you specify whether the bank has initiated legal proceedings or if you're looking for preventive advice?
simplify this • (*) Where any right of action has accrued to recover any debt or other liquidated pecuniary claim, or any claim to the personal estate of a deceased person or to any share or interest therein, and the person liable or accountable therefor acknowledges the claim or makes any payment in respect thereof, the right shall be deemed to have accrued on and not before the date of the acknowledgment or the last payment: • Provided that a payment of a part of the rent or interest due at any time shall not extend the period for claiming the remainder of the rent or interest then due, but any payment of interest shall have effect, for the purposes of this subsection only, as if it were a payment in respect of the principal debt.
Case Rating: *
Sure, here’s a simplified version:
- If someone acknowledges a debt or makes a payment, the right to take action starts from that date.
- Paying part of the rent or interest doesn’t extend the time to claim the rest, but paying interest is treated as paying part of the main debt.
collateral contract meaning
A collateral contract is a secondary agreement that exists alongside a main contract. It is often used to induce a party to enter into the primary contract. Here’s a simple breakdown:
- Separate Agreement: Exists alongside the main contract.
- Inducement: Encourages someone to enter the primary contract.
- Legally Enforceable: If valid, it holds legal weight like any other contract.
Would you like more details on how collateral contracts are applied in debt recovery cases?
how do we reconcile differences btn contracts and statutes
Sure, here's a concise breakdown:
- Statutes Generally Prevail: Statutes, being laws passed by legislative bodies, usually take precedence over contracts.
- Exceptions: Contracts can sometimes modify statutory obligations if the statute allows for such modifications.
- Debt Recovery Context: In debt recovery, the Contracts Act * and specific banking laws like BAFIA guide general principles, but statutory requirements must be adhered to, unless explicitly permitted otherwise.
Would you like more details on a specific type of statutory requirement or contractual term?