Last week is Chinese New Year Holidays, therefore no lecture and tutorial class for Business Law. And today tutorial class will continue discuss the Law of Contract.
1 of the interesting part of Law of Contract I learnt in the business law class is Contract by Minors.
In Malaysian law, the age of majority is 18 years old. For those are below 18 years old, they should lack legal capacity to contract except:
i. Contracts for necessaries
ii. Contracts of scholarship
iii. Contracts of insurance
1 of the interesting part of Law of Contract I learnt in the business law class is Contract by Minors.
In Malaysian law, the age of majority is 18 years old. For those are below 18 years old, they should lack legal capacity to contract except:
i. Contracts for necessaries
ii. Contracts of scholarship
iii. Contracts of insurance
Today, I want to talk about Contracts of insurance. Based on my own experience, I bought insurance when I was 15 years old.
The insurance I bought is a medical insurance which I can get compensation if I have any health problem. Every conditions of the contract must be agreed with my family especially my parent. After my family agreed, I only decided to sign the contract and the contract became valid.
Before this, I never think that age will be an important factor to make a contract because I thought that everyone can make a contract. After attend the business law class, I realize a minor can enter into a contract with several conditions. For instance, a minor can enter into insurance contract with the insurance company under Insurance Act 1963 (Revised 1972). However, if the minor is below 16 years old, he or she can only make insurance contract after taking written consent from his or her parents or guardians.
This means that if that time my parent do not consent I bought the insurance, the insurance contract does not legal although I already agreed with the conditions. This is because it was not fulfill the requirement in Malaysian Law. Therefore, the agent of the insurance company should be very careful when they settle the contract because the insurance company lose money and sue by the client if the agent makes any mistake in the contract with a minor.
The insurance I bought is a medical insurance which I can get compensation if I have any health problem. Every conditions of the contract must be agreed with my family especially my parent. After my family agreed, I only decided to sign the contract and the contract became valid.
Before this, I never think that age will be an important factor to make a contract because I thought that everyone can make a contract. After attend the business law class, I realize a minor can enter into a contract with several conditions. For instance, a minor can enter into insurance contract with the insurance company under Insurance Act 1963 (Revised 1972). However, if the minor is below 16 years old, he or she can only make insurance contract after taking written consent from his or her parents or guardians.
This means that if that time my parent do not consent I bought the insurance, the insurance contract does not legal although I already agreed with the conditions. This is because it was not fulfill the requirement in Malaysian Law. Therefore, the agent of the insurance company should be very careful when they settle the contract because the insurance company lose money and sue by the client if the agent makes any mistake in the contract with a minor.
Prepared by,
Fong Yok Yan (1071120015)
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