Best Contractual Disputes Lawyers in Kuala Lumpur (2026)

Section 74 of the Contracts Act 1950 allows compensation for loss that naturally arose from the breach, or that both parties knew was likely when they made the contract. Loss that is too remote or indirect cannot be claimed.

Yes. Unlike English law, Malaysia does not distinguish between a 'penalty' and 'liquidated damages' — section 75 of the Contracts Act 1950 lets the court award reasonable compensation not exceeding the amount named in the contract. Following the Federal Court's 2019 Cubic Electronics decision, the party seeking to enforce the clause does not always need to prove actual loss; the burden shifts to the defaulting party to show the sum is unreasonable.

Six years from the date of the breach, under section 6(1)(a) of the Limitation Act 1953 — the same national limitation period that applies in every state, including at the courts based in Kuala Lumpur.