CIVIL LAW ACT 1956

ACT 67
First enacted … … … … … … 1956 (Ordinance No. 5 of
1956)
Revised … … … … … … … 1972 (Act 67 w.e.f. 1 April
1972)
Date of coming into operation … West Malaysia : 7 April
1956; East Malaysia : 1
April 1972

Part I PRELIMINARY

SECTION
1. Short title
2. Interpretation

Part II GENERAL

SECTION
3. Application of U.K. common law, rules of equity and certain
statutes
4. Administration of insolvent estates, and winding up of companies
5. Application of English law in commercial matters
6. Immovable property

Part III FATAL ACCIDENTS AND SURVIVAL OF CAUSES OF

ACTION

SECTION
7. Compensation to the family of a person for loss occasioned by his
death
8. Effect of death on certain causes of action

Part IV TORTFEASORS AND AWARD OF INTEREST

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 SECTION
9. Omitted or Deleted Section
10. Proceedings against, and contribution between, joint and several
tortfeasors
11. Power of Courts to award interest on debts and damages

Part V CONTRIBUTORY NEGLIGENCE AND COMMON

EMPLOYMENT

SECTION
12. Apportionment of liability in case of contributory negligence
13. Saving for Merchant Shipping Ordinance 1952
14. Common employment

Part VI FRUSTRATED CONTRACTS

SECTION
15. Adjustment of rights and liabilities of parties to frustrated
contracts
16. Provisions as to application of section15

Part VIA APPORTIONMENT

SECTION
16A. Interpretation
16B. Rents, etc., to accrue from day to day
16C. Apportioned part of rent, etc., to be payable when the next entire
portion due
16D. Remedies for recovering apportioned parts
16E. Exclusion of policies of assurance
16F. Exclusion by express stipulation
16G. Validation of past apportionments

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 Part VII DISPOSAL AND DEVOLUTION OF PROPERTY

SECTION
17. General restrictions on accumulation of income
18. Qualification of restrictions on accumulation
19. Restriction on accumulation for the purchase of land
20. Validation of appointments where objects are excluded or take
illusory shares
21. Executor deemed to be trustee for person entitled to residue on
intestacy
22. Charges on property of deceased to be paid primarily out of the
property charged
23. Moneys payable under policy of assurance not to form part of the
estate of the insured
24. Bona vacantia
25. Saving

Part VIII MISCELLANEOUS

SECTION
26. Agreement by way of gaming or wagering to be null and void
27. Infants
28. No person chargeable with rent bona fide paid to holder under
defective title
28A. Damages in respect of personal injury
29. Repeal
First Schedule
Second Schedule

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An Act relating to the civil law to be administered in Malaysia.
[Peninsular Malaysia—7 April 1956; Sabah and Sarawak—1 April
1972, P.U.(A)424/1971]
1. Short title
This Act may be cited as the Civil Law Act 1956.
2. Interpretation
In this Act unless the context otherwise requires—
“Court” means any court in Malaysia of competent
jurisdiction, and includes any Judge thereof whether sitting in court or in
chambers;
“executor” means the executor or administrator of a deceased
person, and includes, as regards any obligation, any person who takes
possession of or intermeddles with the property of a deceased person;
“persons with disabilities” has the meaning assigned to it in
the Persons with Disabilities Act 2008 [Act 685];
“written law” in relation to any part of Malaysia means
written law as defined in the law relating to interpretation in that part of
Malaysia.
3. Application of U.K. common law, rules of equity and certain
statutes
(1) Save so far as other provision has been made or may hereafter
be made by any written law in force in Malaysia, the Court
shall—

(a) in Peninsular Malaysia or any part thereof, apply the

common law of England and the rules of equity as
administered in England on the 7 April 1956;

(b) in Sabah, apply the common law of England and the rules
of equity, together with statutes of general application, as
administered or in force in England on 1 December 1951;

(c) in Sarawak, apply the common law of England and the rules
of equity, together with statutes of general application, as
administered or in force in England on 12 December 1949,
subject however to subparagraph (3)(ii):
Provided always that the said common law, rules of equity and statutes
of general application shall be applied so far only as the circumstances
of the States of Malaysia and their respective inhabitants permit and
subject to such qualifications as local circumstances render necessary.
(2) Subject to the express provisions of this Act or any other

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 written law in force in Malaysia or any part thereof, in the
event of conflict or variance between the common law and the
rules of equity with reference to the same matter, the rules of
equity shall prevail.
(3) Without prejudice to the generality of paragraphs (1)(b) and
(c) and notwithstanding paragraph (1)(c)—

(i) it is hereby declared that proceedings of a nature such as in

England are taken on the Crown side of the Queen’s Bench
Division of the High Court by way of habeas corpus or for
an order of mandamus, an order of prohibition, an order of
certiorari or for an injunction restraining any person who
acts in an office in which he is not entitled to act, shall be
available in Sabah to the same extent and for the like
objects and purposes as they are available in England;

(ii) the Acts of Parliament of the United Kingdom applied to

Sarawak under sections 3 and 4 of the Application of Laws
Ordinance of Sarawak [Cap. 2] and specified in the Second
Schedule of this Act shall, to the extent specified in the
second column of the said Schedule, continue in force in
Sarawak with such formal alterations and amendments as
may be necessary to make the same applicable to the
circumstances of Sarawak and, in particular, subject to the
modifications set out in the third column of the said
Schedule.
4. Administration of insolvent estates, and winding up of
companies
(1) In the administration by any Court of the assets of any
deceased person whose estate proves to be insufficient for the
payment in full of his debts and liabilities, and in the winding
up of any company under any law from time to time in force
relating to companies, whose assets prove to be insufficient
for the payment of its debts and liabilities, and the costs of
winding up, the same rules shall prevail and be observed, as
to the respective rights of secured and unsecured creditors,
and as to debts and liabilities provable, and as to the valuation
of annuities and future and contingent liabilities respectively,
as are in force for the time being, under the law of
bankruptcy, with respect to the estates of persons adjudged
bankrupt.
(2) All persons who, in any such case, would be entitled to prove
for and receive dividends, out of the estate of any such
deceased person, or out of the assets of any such company,
may come in under the decree or order for the administration

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 of the estate, or under the winding up of the company, and
make such claims against the same as they may respectively
be entitled to by virtue of this Act.
(3) Any absolute assignment, by writing, under the hand of the
assignor, not purporting to be by way of charge only, of any
debt or other legal chose in action, of which express notice in
writing has been given to the debtor, trustee or other person
from whom the assignor would have been entitled to receive
or claim the debt or chose in action, shall be, and be deemed
to have been, effectual in law, subject to all equities which
would have been entitled to priority over the right of the
assignee under the law as it existed in the State before the
date of the coming into force of this Act, to pass and transfer
the legal right to the debt or chose in action, from the date of
the notice, and all legal and other remedies for the same, and
the power to give a good discharge for the same, without the
concurrence of the assignor.
5. Application of English law in commercial matters
(1) In all questions or issues which arise or which have to be
decided in the States of Peninsular Malaysia other than
Malacca and Penang with respect to the law of partnerships,
corporations, banks and banking, principals and agents,
carriers by air, land and sea, marine insurance, average, life
and fire insurance, and with respect to mercantile law
generally, the law to be administered shall be the same as
would be administered in England in the like case at the date
of the coming into force of this Act, if such question or issue
had arisen or had to be decided in England, unless in any case
other provision is or shall be made by any written law.
(2) In all questions or issues which arise or which have to be
decided in the States of Malacca, Penang, Sabah and Sarawak
with respect to the law concerning any of the matters referred
to in subsection(1), the law to be administered shall be the
same as would be administered in England in the like case at
the corresponding period, if such question or issue had arisen
or had to be decided in England, unless in any case other
provision is or shall be made by any written law.
6. Immovable property
Nothing in this Part shall be taken to introduce into Malaysia or any of
the States comprised therein any part of the law of England relating to
the tenure or conveyance or assurance of or succession to any
immovable property or any estate, right or interest therein.

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7. Compensation to persons entitled for loss occasioned by death
(1) Whenever the death of a person is caused by wrongful act,
neglect or default, and the act, neglect or default is such as
would, if death had not ensued, have entitled the party injured
to maintain an action and recover damages in respect thereof,
the party who would have been liable if death had not ensued
shall be liable to an action for damages, notwithstanding the
death of the person injured, and although the death has been
caused under such circumstances as amount in law to an
offence under the Penal Code [Act 574].
(2) Every such action shall be for the benefit of the wife,
husband, parent, child and any person with disabilities under
the care, if any, of the person whose death has been so caused
and shall be brought by and in the name of the executor of the
person deceased.
(3) The damages which the party who shall be liable under
subsection(1) to pay to the party for whom and for whose
benefit the action is brought shall, subject to this section, be
such as will compensate the party for whom and for whose
benefit the action is brought for any loss of support suffered
together with any reasonable expenses incurred as a result of
the wrongful act, neglect or default of the party liable under
subsection (1):
Provided that—

(i) in assessing the damages there shall not be taken into

account—
(a) any sum paid or payable on the death of the person
deceased under any contract of assurance or insurance,
whether made before or after the coming into force of
this Act;
(b) any sum payable, as a result of the death, under any
written law relating to employees’ provident fund;
(c) any pension or gratuity, which has been or will or may
be paid as a result of the death; or
(d) any sum which has been or will or may be paid under
any written law relating to the payment of any benefit
or compensation whatsoever, in respect of the death;

(ii) damages may be awarded in respect of the funeral expenses

of the person deceased if such expenses have been incurred
by the party for whose benefit the action is brought;

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 (iii) no damages shall be awarded to a parent on the ground only
of his having been deprived of the services of a child; and
no damages shall be awarded to a husband on the ground
only of his having been deprived of the services or society
of his wife; and

(iv) in assessing the loss of earnings in respect of any period

after the death of a person where such earnings provide for
or contribute to the damages under this section the Court
shall—
(a) take into account that where the person deceased has
attained the age of sixty years at the time of his death,
his loss of earnings for any period after his death shall
not be taken into consideration; and in the case of any
other person deceased, his loss of earnings for any
period after his death shall be taken into consideration
if it is proved or admitted that the person deceased and
was receiving earnings by his own labour or other
gainful activity prior to his death;
(b) take into account only the amount relating to the
earnings as aforesaid and the Court shall not take into
account any prospect of the earnings as aforesaid
being increased at any period after the person’s death;
(c) take into account any diminution of any such amount
as aforesaid by such sum as is proved or admitted to
be the living expenses of the person deceased at the
time of his death;
(d)
take into account that in the case of a person who was
of the age of thirty years and below at the time of his
death, the number of years’ purchase shall be 16; and
in the case of any other person who was of the age
range extending between thirty one years and fifty-
nine years at the time of his death, the number of
years’ purchase shall be calculated by using the figure
60, minus the age of the person at the time of death
and dividing the remainder by the figure 2.
(3A) An action under this section may consist of or include a claim
for damages for bereavement and, subject to subsection(3d),
the sum to be awarded as damages under this subsection shall
be thirty thousand ringgit.
(3B) A claim for damages for bereavement shall only be for the
benefit of—

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 (a) the spouse of the person deceased;

(b) the child of the person deceased; and

(c) the parents of the person deceased.

(3C) Where there is a claim for damages under paragraph(3B), the
sum awarded shall be divided equally between them subject to
any deduction likely to be made in respect of all costs and
expenses including costs not recovered from the defendant.
(3D) The Yang di-Pertuan Agong may from time to time by order
published in the Gazette vary the sum specified in subsection
(3a).
(3E) An order made under subsection (3d) shall be published in the
Gazette and as soon as possible thereafter, shall be laid before
the Dewan Rakyat; and if the Dewan Rakyat passes a
resolution annulling the order, it shall be void but without
prejudice to the validity of anything previously done
thereunder or to the making of a new order as from the date of
notification in the Gazette of the passing of the resolution.
(4) The amount, other than the amount awarded under proviso
(iii) to subsection (3) and the amount recovered under
paragraph (3B), so recovered after deducting all costs and
expenses, including the costs not recovered from the
defendant, shall be divided amongst the before-mentioned
parties, or any of them in such shares as the Court by its
judgment or decree directs.
(5) Not more than one action shall be brought for and in respect
of the same subject matter of complaint, and every such action
shall be brought within three years after the death of the
person deceased.
(6) In any such action the executor of the deceased may insert a
claim for and recover any pecuniary loss to the estate of the
deceased occasioned by the wrongful act, neglect, or default,
which sum when recovered shall be deemed part of the assets
of the estate of the deceased.
(7) The plaint or writ or summons in any such action shall give
full particulars of the person or persons for whom or on
whose behalf the action is brought, and of the nature of the
claim in respect of which damages are sought to be recovered.
(8) If there is no executor of the person deceased or there being
an executor no action as in this section mentioned has, within
six calendar months after the death of the person deceased,
been brought by the executor, the action may be brought by
all or any of the persons, if more than one, for whose benefit

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 the action would have been brought if it had been brought by
the executor, and every action so to be brought shall be for the
benefit of the same person or persons and shall be subject to
the same procedure as nearly as may be as if it was brought
by the executor.
(9) It shall be sufficient for any defendant in any action brought
under this section to pay any money, he is advised to pay into
Court as a compensation, in one sum to all persons entitled
under this section for his wrongful act, neglect or default
without specifying the shares into which it is to be divided.
(10) If the said sum is not accepted and an issue is taken by the
plaintiff as to its sufficiency and the Court thinks the same
sufficient, the defendant shall be entitled to judgment upon
that issue.
(11) In this section unless the context otherwise requires—
“child” includes son, daughter, grandson, granddaughter,
stepson and stepdaughter;
“parent” includes father, mother, grandfather and
grandmother;
“pension” includes a return of contributions and any payment
of a lump sum in respect of a person’s employment:
Provided that in deducing any relationship referred to in this subsection
any illegitimate person or any person who has been adopted, or whose
adoption has been registered, in accordance with any written law shall
be treated as being or as having been the legitimate offspring of his
mother and reputed father or, as the case may be, of his adopters.
8. Effect of death on certain causes of action
(1) Subject to this section, on death of any person all causes of
action subsisting against or vested in him shall survive
against, or, as the case may be, for the benefit of, his estate:
Provided that this subsection shall not apply to causes of action for
defamation or seduction or for inducing one spouse to leave or remain
apart from the other or to any claim for damages on the ground of
adultery.
(2) Where a cause of action survives as aforesaid for the benefit
of the estate of a deceased person, the damages recoverable
for the benefit of the estate of that person—

(a) shall not include any exemplary damages, any damages for
bereavement made under subsection 7(3a), any damages for
loss of expectation of life and any damages for loss of
earnings in respect of any period after that person’s death;

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 (b) in the case of a breach of promise to marry shall be limited
to such damage, if any, to the estate of that person as flows
from the breach of promise to marry; and

(c) where the death of that person has been caused by the act or
omission which gives rise to the cause of action, shall be
calculated without reference to any loss or gain to his estate
consequent on his death, except that a sum in respect of
funeral expenses may be included.
(3) No proceedings shall be maintainable in respect of a cause of
action in tort which by virtue of this section has survived
against the estate of a deceased person, unless proceedings
against him in respect of that cause of action either—

(a) were pending at the date of his death; or

(b) are taken not later than six months after his personal
representative took out representation.
(4) Where damage has been suffered by reason of any act or
omission in respect of which a cause of action would have
subsisted against any person if that person had not died before
or at the same time as the damage was suffered, there shall be
deemed, for the purposes of this section, to have been
subsisting against him before his death such cause of action in
respect of that act or omission as would have subsisted if he
had died after the damage was suffered.
(5) The rights conferred by this section for the benefit of the
estate of deceased persons shall be in addition to and not in
derogation of any rights conferred on the dependants of
deceased persons by section 7 and so much of this section as
relates to causes of action against the estates of deceased
persons shall apply in relation to causes of action under the
said section as it applies in relation to other causes of action
not expressly excepted from the operation of subsection (1).
(6) In the event of the insolvency of an estate against which
proceedings are maintainable by virtue of this section, any
liability in respect of the cause of action in respect of which
the proceedings are maintainable shall be deemed to be a debt
provable in the administration of the estate, notwithstanding
that it is a demand in the nature of unliquidated damages
arising otherwise than by a contract, promise or breach of
trust.

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9. Omitted or Deleted Section
(Deleted by Ordinance No. 36 of 1957).
10. Proceedings against, and contribution between, joint and
several tortfeasors
(1) Where damage is suffered by any person as a result of a tort
(whether a crime or not)—

(a) judgment recovered against any tortfeasor liable in respect

of that damage shall not be a bar to an action against any
other person who would, if sued, have been liable as a joint
tortfeasor in respect of the same damage;

(b) if more than one action is brought in respect of that damage

by or on behalf of the person by whom it was suffered, or
for the benefit of the estate, or of the wife, husband, parent
or child, of that person, against tortfeasors liable in respect
of the damage (whether as joint tortfeasors or otherwise) the
sums recoverable under the judgments given in those
actions by way of damages shall not in the aggregate
exceed the amount of the damages awarded by the
judgment first given; and in any of those actions, other than
that in which judgment is first given, the plaintiff shall not
be entitled to costs unless the Court is of opinion that there
was reasonable ground for bringing the action;

(c) any tortfeasor liable in respect of that damage may recover

contribution from any other tortfeasor who is, or would if
sued have been, liable in respect of the same damage,
whether as a joint tortfeasor or otherwise, so, however, that
no person shall be entitled to recover contribution under this
section from any person entitled to be indemnified by him
in respect of the liability in respect of which the
contribution is sought.
(2) In any proceedings for contribution under this section the
amount of the contribution recoverable from any person shall
be such as may be found by the Court to be just and equitable
having regard to the extent of that person’s responsibility for
the damage, and the Court shall have power to exempt any
person from liability to make contribution, or to direct that the
contribution to be recovered from any person shall amount to
a complete indemnity.
(3) For the purpose of this section—

(a) the expressions “parent” and “child” have the same

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 meanings as they have for the purposes of section 7; and

(b) the reference in paragraph (1)(b) to “the judgment first

given” shall, in a case where that judgment is reversed on
appeal, be construed as a reference to the judgment first
given which is not so reversed and, in a case where a
judgment is varied on appeal, be construed as a reference to
that judgment as so varied.
(4) Nothing in this section shall—

(a) affect any criminal proceedings against any person in

respect of any wrongful act; or

(b) render enforceable any agreement for indemnity which

would not have been enforceable if this section had not
been enacted.
11. Power of Courts to award interest on debts and damages
(1) In any proceedings tried in any Court for the recovery of any
debt or damages, the Court may, if it thinks fit, order that
there shall be included in the sum for which judgment is given
interest as such rate as it thinks fit on the whole or any part of
the debt or damages for the whole or any part of the period
between the date when the cause of action arose and the date
of the judgment:
Provided that nothing in this section—

(a) shall authorize the giving of interest upon interest;

(b) shall apply in relation to any debt upon which interest is

payable as of right whether by virtue of any agreement or
otherwise; or

(c) shall affect the damages recoverable for the dishonour of a

bill of exchange.
(2) Where interest is awarded under subsection (1) for recovery of
damages under section 6a of the Limitation Act 1953 [Act
254], the interest may be given for the whole or any part of
the period between the starting date and the date of the
judgement.
(3) For the purposes of subsection (2), “starting date” has the
meaning assigned to it in the Limitation Act 1953.
12. Apportionment of liability in case of contributory negligence
(1) Where any person suffers damage as the result partly of his
own fault and partly of the fault of any other person, a claim

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 in respect of that damage shall not be defeated by reason of
the fault of the person suffering the damage, but the damages
recoverable in respect thereof shall be reduced to such extent
as the Court thinks just and equitable having regard to the
claimant’s share in the responsibility for the damage:
Provided that—

(a) this subsection shall not operate to defeat any defence

arising under a contract; and

(b) where any contract or written law providing for the

limitation of liability is applicable to the claim the amount
of damages recoverable by the claimant by virtue of this
subsection shall not exceed the maximum limit so
applicable.
(2) Where damages are recoverable by any person by virtue of the
foregoing subsection subject to such reduction as is therein
mentioned, the Court shall find and record the total damages
which would have been recoverable if the claimant had not
been at fault.
(3) Section 10 shall apply in any case where two or more persons
are liable or would, if they had all been sued, be liable by
virtue of subsection (1) in respect of the damage suffered by
any person.
(4) Where any person dies as the result partly of his own fault and
partly of the fault of any other person or persons, and
accordingly if an action were brought for the benefit of the
estate under section 8, the damages recoverable would be
reduced under subsection (1), any damages recoverable in any
action brought for the benefit of the dependants of that person
under section7 or for the benefit of the husband of that person
under proviso (iii) of subsection 7(3) or of the spouse or
parents under subsection7(3b) shall be reduced to a
proportionate extent.
(5) Where in any case to which subsection (1) applies, one of the
persons at fault avoids liability to any other such person or his
personal representative by pleading the Limitation Act 1953
[Act 254], or any other written law limiting the time within
which proceedings may be taken, he shall not be entitled to
recover any damages or contributions from that other person
or representative by virtue of the said subsection.
(6) In this section “fault” means negligence, breach of statutory
duty or other act or omission which gives rise to a liability in
tort or would, apart from this Act, give rise to the defence of
contributory negligence.

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13. Saving for Merchant Shipping Ordinance 1952
(1) Section 12 shall not apply to any claims to which section513
of the Merchant Shipping Ordinance 1952 [Ord. No. 70 of
1952 ], or the corresponding provisions of any other law
apply and those provisions shall have effect as if this Act had
not been passed.
(2) The provisions mentioned in subsection (1) shall not apply to
any case where the acts or omissions giving rise to the claim
occurred before the coming into force of this Act.
14. Common employment
(1) It shall not be a defence to an employer who is sued in respect
of personal injuries caused by the negligence of a person
employed by him, that that person was at the time the injuries
were caused in common employment with the person injured.
(2) Any provision contained in a contract of service or
apprenticeship, or in an agreement collateral thereto
(including a contract or agreement entered into before the
coming into force of this Act) shall be void so far as it would
have the effect of excluding or limiting any liability of the
employer in respect of personal injuries caused to the person
employed or apprenticed by the negligence of persons in
common employment with him.
(3) For the purpose of this section “personal injury” includes any
disease and any impairment of a person’s physical or mental
condition, and the expression “injured” shall be construed
accordingly.
15. Adjustment of rights and liabilities of parties to frustrated
contracts
(1) Where a contract has become impossible of performance or
been otherwise frustrated, and the parties thereto have for that
reason been discharged from the further performance of the
contract, subsections (2) to (6) shall, subject to section 16,
have effect in relation thereto.
(2) All sums paid or payable to any party in pursuance of the
contract before the time when the parties were so discharged
(in this Act referred to as “the time of discharge”) shall, in the
case of sums so paid, be recoverable from him as money
received by him for the use of the party by whom the sums
were paid, and, in the case of sums so payable, cease to be so
payable:
Provided that, if the party to whom the sums were so paid or payable
incurred expenses before the time of discharge in, or for the purpose of,

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the performance of the contract, the Court may, if it considers it just to
do so having regard to all the circumstances of the case, allow him to
retain or, as the case may be, recover the whole or any part of the sums
so paid or payable, not being an amount in excess of the expenses so
incurred.
(3) Where any party to the contract has, by reason of anything
done by any other party thereto in, or for the purpose of, the
performance of the contract, obtained a valuable benefit (other
than a payment of money to which subsection (2) applies)
before the time of discharge, there shall be recoverable from
him by the said other party such sum (if any), not exceeding
the value of the said benefit to the party obtaining it, as the
Court considers just, having regard to all the circumstances of
the case and, in particular—

(a) the amount of any expenses incurred before the time of

discharge by the party benefited in, or for the purpose of,
the performance of the contract, including any sums paid or
payable by him to any other party in pursuance of the
contract and retained or recoverable by that party under
subsection (2); and

(b) the effect, in relation to the said benefit, of the

circumstances giving rise to the frustration of the contract.
(4) In estimating, for the purposes of subsections (1) to (3), the
amount of any expenses incurred by any party to the contract,
the Court may, without prejudice to the generality of the said
subsections, include such sum as appears to be reasonable in
respect of overhead expenses and in respect of any work or
services performed personally by the said party.
(5) In considering whether any sum ought to be recovered or
retained under subsections (1) to (4) by any party to the
contract the Court shall not take into account any sums which
have, by reason of the circumstances giving rise to the
frustration of the contract, become payable to that party under
any contract of insurance unless there was an obligation to
insure imposed by an express term of the frustrated contract
or by or under any enactment.
(6) Where any person has assumed obligations under the contract
in consideration of the conferring of a benefit by any other
party to the contract upon any other person, whether a party to
the contract or not, the Court may, if in all the circumstances
of the case it considers it just to do so, treat for the purposes
of subsection(3) any benefit so conferred as a benefit obtained
by the person who has assumed the obligations as aforesaid.

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16. Provisions as to application of section15
(1) Section 15 shall apply to contracts whether made before or
after the coming into force of this Act.
(2) Section 15 shall apply to contracts to which the Government
is a party in like manner as to contracts between subjects.
(3) Where any contract to which section 15 applies contains any
provisions which, upon the true construction of the contract, is
intended to have effect in the event of circumstances arising
which operate, or would but for the said provision operate, to
frustrate the contract, or is intended to have effect whether
those circumstances arise or not, the Court shall give effect to
the said provision and shall only give effect to section 15 to
such extent, if any, as appears to the Court to be consistent
with the said provision.
(4) Where it appears to the Court that a part of any contract to
which section 15 applies can properly be severed from the
remainder of the contract, being a part wholly performed
before the time of discharge, or so performed except for the
payment in respect of that part of the contract of sums which
are or can be ascertained under the contract, the Court shall
treat that part of the contract as if it were a separate contract
and had not been frustrated and shall treat section 15 as only
applicable to the remainder of that contract.
(5) Section 15 shall not apply—

(a) to any charterparty, except a time charterparty or a

charterparty by way of demise, or to any contract (other
than a charterparty) or the corresponding provisions of any
written law for the carriage of goods by sea;

(b) to any contract of insurance, save as is provided by

subsection (5) thereof; or

(c) to any contract to which section 7 of the Sale of Goods Act

1893 of the United Kingdom [56 and 57 Vict.c.71] (which
avoids contracts for the sale of specific goods which perish
before the risk has passed to the buyer) or the
corresponding provisions of any written law applies, or to
any other contract for the sale, or for the sale and delivery,
of specific goods, where the contract is frustrated by reason
of the fact that the goods have perished.
16a. Interpretation
In this Part, unless the context otherwise requires—
“annuities” includes salaries and pensions;

17

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 “dividends” includes (besides dividends strictly so called) all
payments made by the name of dividend, bonus, or otherwise out of the
revenue of trading or other public companies, divisible between all or
any of the members of the respective companies, whether the payments
are usually made or declared at any fixed times or otherwise; and all
such divisible revenue shall, for the purposes of this Part, be deemed to
have accrued by equal daily increment during and within the period for
or in respect of which the payment of the same revenue is declared or
expressed to be made, but the said word “dividends” does not include
payments in the nature of a return or reimbursement of capital;
“rents” includes all periodical payments or renderings in lieu
of or in the nature of rent but does not include rent payable to the State
Authority (that is to say, payments of the nature included in the
definition of “rent” in the National Land Code [Act 56 of 1965]) in
respect of alienated land (as so defined).
16b. Rents, etc., to accrue from day to day
All rents, annuities, dividends, and other periodical payments in the
nature of income (whether reserved or made payable under an
instrument in writing or otherwise) shall, like interest on money lent, be
considered as accruing from day to day, and shall be apportionable in
respect of time accordingly.
16c. Apportioned part of rent, etc., to be payable when the next
entire portion due
The apportioned part of any such rent, annuity, dividend, or other
payment shall be payable or recoverable, in the case of a continuing
rent, annuity, or other such payment, when the entire portion of which
such apportioned part forms part becomes due and payable, and not
before; and in the case of a rent, annuity, or other such payment
determined by re-entry, death, or otherwise, when the next entire portion
of the same would have been payable if the same had not so determined,
and not before.
16d. Remedies for recovering apportioned parts
All persons and their respective executors, administrators, and assigns,
and also the executors, administrators, and assigns respectively of
persons whose interest determine with their own deaths, shall have such
or the same remedies for recovering such apportioned parts as aforesaid
when payable (allowing proportionate parts of all just allowances) as
they respectively would have had for recovering such entire portions as
aforesaid if entitled thereto respectively:
Provided that persons liable to pay rents reserved out of or charged on
lands or tenements, and the same lands or tenements, shall not be

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resorted to for any such apportioned part forming part of an entire or
continuing rent as aforesaid specifically, but the entire or continuing
rent, including such apportioned part, shall be recovered and received by
the person who, if the rent had not been apportionable under this Part or
otherwise, would have been entitled to such entire or continuing rent,
and such apportioned part shall be recoverable from the person by the
executors or other parties entitled under this Part to the same by suit.
16e. Exclusion of policies of assurance
Nothing in this Part shall render apportionable any annual sums made
payable in policies of assurance of any description.
16f. Exclusion by express stipulation
This Part shall not extend to any case in which it may be expressly
stipulated that no apportionment shall take place.
16g. Validation of past apportionments
No payment, composition, discharge or settlement of account made or
given prior to 28 December 1928, in Malacca or Penang, or to the
commencement of this Part in other States shall be deemed invalid by
reason only of the fact that it was made or given in pursuance of the
apportionment of a periodical payment not lawfully apportionable, if the
apportionment would have been lawful, had it been made after the
aforesaid date and under this Part.
17. General restrictions on accumulation of income
(1) No person may by any instrument or otherwise settle or
dispose of any property in such manner that the income
thereof shall, save as hereinafter mentioned, be wholly or
partially accumulated for any longer period than one of the
following:

(a) the life of the grantor or settlor;

(b) a term of eighteen years from the death of the grantor, or

settlor;

(c) the duration of the minority or respective minorities of any

person living or en ventre sa mere at the death of the
grantor or settlor; or

(d) the duration of the minority or respective minorities only of

any person who under the limitations of the instrument
directing the accumulations would, for the time being, if of
full age, be entitled to income directed to be accumulated.

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 (2) In every case where any accumulation is directed otherwise
than as in subsection (1), the direction shall (save as
hereinafter mentioned) be void; and the income of the
property directed to be accumulated shall, so long as the same
is directed to be accumulated contrary to this section, go to
and be received by the person who would have been entitled
thereto if the accumulation had not been directed.
(3) This section does not extend to any provision—

(a) for payment of the debts of any grantor, settlor or other

person; or

(b) for raising portions for–

(i) any child, children or remoter issue of any grantor or
settlor; or
(ii) any child, children or remoter issue of a person taking
any interest under any settlement or other disposition
directing the accumulations or to whom any interest is
thereby limited,
and accordingly such provisions may be made as if no
statutory restrictions on accumulation of income had been
imposed.
18. Qualification of restrictions on accumulation
Where accumulations of surplus income are made during a minority
under any statutory power or under the general law, the period for which
the accumulations are made is not (whether the trust was created or the
accumulations were made before or after the coming into force of this
Act) to be taken into account in determining the periods for which
accumulations are permitted to be made by section 17, and accordingly
an express trust for accumulation for any permitted period shall not be
deemed to have been invalidated or become invalid, by reason of
accumulations also having been made as aforesaid during the minority.
19. Restriction on accumulation for the purchase of land
No person may settle or dispose of any property in such a manner that
the income thereof shall be wholly or partially accumulated for the
purchase of land only for any longer period than the duration of the
minority or respective minorities of any person who, under the
limitations of the instrument directing the accumulation, would for the
time being, if he had attained his majority, be entitled to the income so
directed to be accumulated.

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20. Validation of appointments where objects are excluded or take
illusory shares
(1) No appointment made in exercise of any power to appoint any
property among two or more objects shall be invalid on the
ground that—

(a) an unsubstantial, illusory, or nominal share only is

appointed to or left unappointed to devolve upon any one or
more of the objects of the power; or

(b) any object of the power is thereby altogether excluded, but

every such appointment shall be valid notwithstanding that
any one or more of the objects is not thereby, or in default
of appointment, to take any share in the property.
(2) This section shall not affect any provision in the instrument
creating the power which declares the amount of any share
from which any object of the power is not to be excluded.
(3) This section shall apply to appointments made before or after
the coming into force of this Act.
21. Executor deemed to be trustee for person entitled to residue
on intestacy
When any person dies or has died, having by his will, appointed any
person to be his executor, the executor shall be deemed to be a trustee
for the person, if any, who would be entitled to the estate in case the
person died intestate in respect of any residue not expressly disposed of,
unless it appears by the will that the person so appointed executor was
intended to take the residue beneficially.
22. Charges on property of deceased to be paid primarily out of
the property charged
(1) Where a person dies possessed of, or, entitled to, or under a
general power of appointment by his will disposes of, an
interest in property, which at the time of his death is charged
with the payment of money, whether by way of mortgage,
charge or otherwise (including a lien for unpaid purchase
money), and the deceased has not by will, deed or other
document signified a contrary or other intention, the interest
so charged, shall as between the different persons claiming
through the deceased, be primarily liable for the payment of
the charge; and every part of the said interest, according to its
value, shall bear a proportionate part of the charge on the
whole thereof.
(2) Such contrary or other intention shall not be deemed to be
signified—

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 (a) by a general direction for the payment of debts or of all the
debts of the testator out of his personal estate, or his
residuary real and personal estate, or his residuary real
estate; or

(b) by a charge of debts upon any such estate, unless the

intention is further signified by words expressly or by
necessary implication referring to all or some part of the
charge.
(3) Nothing in this section affects the right of a person entitled to
the charge to obtain payment or satisfaction thereof either out
of the other assets of the deceased or otherwise.
23. Moneys payable under policy of assurance not to form part of
the estate of the insured
(1) A policy of assurance effected by any man on his own life and
expressed to be for the benefit of his wife or of his children or
of his wife and children or any of them, or by any woman on
her own life and expressed to be for the benefit of her
husband or of her children or of her husband and children or
any of them, shall create a trust in favour of the objects
therein named, and the moneys payable under any such policy
shall not so long as any object of the trust remains
unperformed form part of the estate of the insured or be
subject to his or her debts.
(2) If it is proved that the policy was effected and the premiums
paid with intent to defraud the creditors of the insured, they
shall be entitled to receive out of the moneys payable under
the policy a sum equal to the premiums so paid.
(3) The insured may by the policy or by any memorandum under
his or her hand appoint a trustee or trustees of the moneys
payable under the policy, and from time to time appoint a new
trustee or new trustees thereof, and may make provision for
the appointment of a new trustee or new trustees thereof and
for the investment of the moneys payable under any such
policy.
(4) In default of any such appointment of a trustee the policy
immediately on its being effected shall vest in the insured and
his or her legal personal representatives in trust for the
purposes aforesaid.
(5) If at the time of the death of the insured or at any time
afterwards there is no trustee, or it is expedient to appoint a
new trustee or new trustees, a trustee or trustees or a new
trustee or new trustees may be appointed by the High Court.

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 (6) The receipt of a trustee or trustees duly appointed, or in
default of any such appointment or in default of notice to the
insurance office the receipt of the legal personal representative
of the insured, shall be a discharge to the office for the sum
secured by the policy or for the value thereof in whole or in
part.
24. Bona vacantia
When a right to the personal estate of any person who dies intestate
without next of kin has accrued to the Government, the personal estate
or the proceeds thereof shall form part of the Consolidated Fund and
shall be appropriated as part of the Fund to such public purposes as the
Yang di-Pertuan Agong from time to time thinks proper and directs:
Provided that the Yang di-Pertuan Agong may by warrant order the
transfer of the whole or any part of such personal estate or the proceeds
thereof to any person who shall establish to the satisfaction of the Yang
di-Pertuan Agong any equitable or moral claim thereto.
25. Saving
Nothing in this Part shall affect the disposal of any property according
to Muslim law or, in Sabah and Sarawak, native law and custom.
26. Agreement by way of gaming or wagering to be null and void
(1) All contracts or agreements, whether by parol or in writing,
by way of gaming or wagering shall be null and void.
(2) No action shall be brought or maintained in any Court for
recovering any sum of money or valuable thing alleged to be
won upon any wager or which has been deposited in the
hands of any person to abide the event on which any wager
has been made.
(3) Subsections (1) and (2) shall not be deemed to apply to any
subscription or contribution, or agreement to subscribe or
contribute, for or toward any plate, prize, or sum of money to
be awarded to the winner of any lawful game, sport, pastime
or exercise.
(4) Any promise, express or implied, to pay any person any sum
of money paid by him under or in respect of any contract or
agreement rendered null and void by subsections (1) and (2),
or to pay any sum of money by way of commission, fee,
reward or otherwise in respect of any such contract or of any
services in relation thereto or in connection therewith, shall be
null and void, and no action shall be brought or maintained to
recover any such sum of money.

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27. Infants
In all cases relating to the custody and control of infants the law to be
administered shall be the same as would have been administered in like
cases in England at the date of the coming into force of this Act, regard
being had to the religion and customs of the parties concerned, unless
other provision is or shall be made by any written law.
28. No person chargeable with rent bona fide paid to holder
under defective title
(1) No person shall be chargeable with any rents or profits of any
immovable property which he has bona fide paid over to any
person of whom he bona fide held the same notwithstanding it
afterwards appears that the person to whom the payment was
made had no right to receive such rents or profits.
(2) If any person erects any building or makes an improvement
upon any land held by him in the bona fide belief that he had
an estate in fee simple or other absolute estate, and that
person, his executor or assign, or his under-tenant is evicted
from the land by any person having a better title, the person
who erected the building or made the improvement, his
executor or assign shall be entitled either to have the value of
the building or improvement so erected or made while the
land was held by him and in that belief estimated and paid or
secured to him or at the option of the person causing the
eviction to purchase the interest of that person in the land at
the value thereof but not taking into account the value of the
building or improvement.
(3) The amount to be paid or secured in respect of the building or
improvement shall be the estimated value of the same at the
time of the eviction.
(4)

(a) Every tenant holding over after the determination of his

tenancy shall be chargeable, at the option of his landlord,
with double the amount of his rent until possession is given
up by him or with double the value during the period of
detention of the land or premises so detained, whether
notice to that effect has been given or not.

(b) Paragraph (a) shall have effect in Sabah subject to section26

of the Rent Control (Business Premises) Enactment 1965 of
Sabah [En. 1 of 1966] and in Sarawak subject to section19
of the Rent Control Ordinance of Sarawak [Cap. 86].
(5) When any writ or summons issued by a landlord against a
tenant for the recovery of immovable property is served on or

24

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 comes to the knowledge of any subtenant of the plaintiff″s
immediate tenant, the subtenant being an occupier of the
whole or any part of the premises sought to be recovered, he
shall forthwith give notice thereof to his immediate landlord,
under penalty of forfeiting three years’ rack rent of the
premises held by the subtenant to the person of whom he
holds, to be recovered by that person by action in any Court
having jurisdiction.
28A. Damages in respect of personal injury
(1) In assessing damages recoverable in respect of personal injury
which does not result in death, there shall not be taken into
account—

(a) any sum paid or payable in respect of the personal injury

under any contract of assurance or insurance, whether made
before or after the coming into force of this Act;

(b) any pension or gratuity, which has been or will or may be

paid as a result of the personal injury; or

(c) any sum which has been or will or may be paid under any
written law relating to the payment of any benefit or
compensation whatsoever in respect of the personal injury.
(2) In assessing damages under this section—

(a) no damages shall be recoverable in respect of any loss of

expectation of life caused to the plaintiff by the injury;

(b) if the plaintiff’s expectation of life has been reduced by the

injury, the Court, in assessing damages in respect of pain
and suffering caused by the injury, shall take into account
any suffering caused or likely to be caused by awareness
that his expectation of life has been so reduced;

(c) in awarding damages for loss of future earnings the Court

shall take into account—
(i) that in the case of a plaintiff who has attained the age
of sixty years or above at the time when he was
injured, no damages for such loss shall be awarded;
and in any other case, damages for such loss shall not
be awarded unless it is proved or admitted that the
plaintiff was receiving earnings by his own labour or
other gainful activity before he was injured;
(ii) only the amount relating to his earnings as aforesaid at
the time when he was injured and the Court shall not

25

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 take into account any prospect of the earnings as
aforesaid being increased at some time in the future;
(iii) any diminution of any such amount as aforesaid by
such sum as is proved or admitted to be the living
expenses of the plaintiff at the time when he was
injured;

(d) in assessing damages for loss of future earnings the Court

shall take into account that—
(i) in the case of a person who was of the age of thirty
years or below at the time when he was injured, the
number of years’ purchase shall be 16; and
(ii) in the case of any other person who was of the age
range extending between thirty-one years and fifty-
nine years at the time when he was injured, the
number of years’ purchase shall be calculated by using
the figure 60, minus the age of the person at the time
when he was injured and dividing the remainder by
the figure 2.
29. Repeal
The Ordinances and Enactments set out in the First Schedule to this Act
are hereby repealed to the extent specified in the third column of that
Schedule.

26

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 First Schedule
[Section29]
REPEAL
S.S. Cap. 42 … … Civil Law Ordinance … … The whole
S.S. Cap. 118 … … Conveyancing and Law of S. 73
Property Ordinance
F.M.S. No. 3 of 1937 Civil Law Enactment … … The whole
…
F.M.S. Cap. 8 … … Probate and Administration S. 93(ii)
Enactment
F.M.S. Cap. 19 … … Executors (Powers) and Fatal The whole
Accidents Enactment
Johore Enactment No. Probate and Administration S. 82
22 Enactment
Johore Enactment No. Fatal Accidents Enactment … The whole
99
Kelantan Enactment Executors (Powers) and Fatal The whole
No. 15 of 1931 Accidents Enactment
Kedah Enactment No. Fatal Accidents Enactment The whole
2 of 1360 1360
Trengganu Enactment Probate and Administration S. 44(ii)
No. 22 of 1356 Enactment
F. of M. No. 49 of Civil Law (Extension) The whole
1951 Ordinance 1949

27

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 Second Schedule
[Subparagraph3(3)(ii)]
ACTS OF PARLIAMENT OF THE UNlTED KINGDOM WHICH
CONTINUE IN FORCE IN SARAWAK
Short title Extent to which Modifications
Act continues in
force
Swk. Vol. VI Law Reform Subsection 1(7), In sections 2
page 1455 (8 (Contributory sections 2, 3, 4 and 4, the
and 9 Geo. 6 c. Negligence) Act and 7 references to the
28) 1945 Workmen’s
Compensation
Acts 1925 to
1943 and to
sections thereof
shall be read as
references to the
Workmen’s
Compensation
Ordinance Cap.
80 of Sarawak
and to the
corresponding
sections thereof
Swk. Vol. VI Law Reform The whole None
page 1459 (2 (Enforcement of
and 3 Eliz. 2 c. Contracts) Act
34) 1954
Swk. Vol. VI Law Reform Subsections None
page 1461 (12, (Miscellaneous 4(1), 7(1) and
13 and 14 Geo. Provisions) Act (2)
6 c. 100) 1949
6, Edw. 7 c. 41 Marine The whole None
Insurance Act except section91
1906

28

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 Short title Extent to which Modifications
Act continues in
force
21, Geo. 5 c. 2 Marine The whole In subsection
Insurance 1(3) the
(Gambling reference to the
Policies) Act consent in
1909 England of the
Attorney
General, in
Scotland of the
Lord Advocate,
and in Ireland of
the Attorney
General for
Ireland shall be
construed as
referring to the
consent of the
Public
Prosecutor,
Malaysia.

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