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The Contracts Act 1950 (Malaysia) s 7(b) states that acceptance must be expressed in some usual or reasonable manner, unless the proposal prescribes a manner in which it is to be accepted.

In the case of Prism Leisure Sdn Bhd v Lumut Marine Resort Bhd [2002] 5 CLJ 391, the High Court stated as follows:

“An acceptance is an expression of assent to the terms of an offer and it is usually final and unqualified. Simply put, an agreement is made when one party accepts an offer made by the other party. But an acceptance must be unqualified.”

Acceptance of an offer or proposal must be unequivocal and should constitute an unconditional assent by the promisee to the terms or the offer or proposal. A qualified acceptance introducing proposed new terms or rejecting some of the offered terms constitutes a rejection of the original offer or proposal and amounts to a counter offer or counter proposal. Only unconditional or unqualified acceptance by the promisee will create a binding contract with the promisor. In contracts involving real property, a binding contractual relationship may be created on the exchange of signed contracts between the parties.

Most solicitors when negotiating with another solicitor on the terms and conditions of a sale and purchase agreement would usually insert the phrase “subject to contract” in their correspondence to each other. This means that any acceptance is qualified and is subject to a formal contract being drawn up by both parties.

This preview is an excerpt from the following publication. this publication for access to all the commentary and precedents.

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Sale of Real Property - Step by Step Guide & Precedents

by By Lawyers For Lawyers author - Jayadeep Hari & Jamil


This step by step guide provides a comprehensive directory and convenient precedents which will help ensure a smooth and easy property sale.

This publication will guide you from the point of negotiation straight through to transfer of title. The guide includes practical commentary ensuring that no issues are overlooked together with a broad range of precedents.

All matters are covered including;

  • Land Title Searches
  • Bankruptcy Searches
  • Essential preliminaries for property with OR without title
  • Caveats
  • Strata Title Act 1985
  • Finalisation

This guide is written by lawyers for lawyers and consequently it is practical, efficient and easy to use.

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