Breach of Contract Lawyer Malaysia | Commercial Dispute

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Breach of Contract Lawyers in Malaysia — Commercial & Corporate Disputes

Breach of contract is one of the most common reasons businesses in Malaysia end up in court — and one of the most financially damaging. Whether your supplier has abandoned a project midway, a distributor is in breach of an exclusivity agreement, a buyer is refusing to pay, or a commercial partner has walked away from their obligations, you need contract dispute lawyers who can act quickly and decisively to protect your business.

NZSK’s corporate litigation team advises and represents companies and individuals in the full range of commercial contract disputes before the Malaysian courts. With offices in Mont Kiara, Kuala Lumpur and Puchong, Selangor, we act for businesses across the Klang Valley and throughout Malaysia — from SMEs dealing with a defaulting supplier to multinationals in complex, multi-party commercial litigation.

Our approach to every breach of contract matter is the same: analyse the contract and all surrounding documentation carefully, identify every available cause of action and avenue of recovery, build the strongest possible case, and pursue it efficiently — whether through negotiation, mediation, or litigation.

Why Choose Us?

Types of Contract Disputes We Handle in Malaysia

Supply and purchase agreement disputes — including disputes over the quality of goods, failure to deliver, short delivery, delayed delivery, and refusal to accept goods in breach of the contract
Service agreement breaches — where a service provider fails to complete work to the required standard, abandons a project, or delivers services that do not conform to specification
Distribution and agency agreement disputes — including wrongful termination of distributorships, breach of territorial exclusivity, and refusal to pay commissions or overriders
Franchise agreement disputes — between franchisors and franchisees over territory, brand standards, royalty payments, and termination — we act for both sides
Non-compete and restraint of trade clause disputes — both enforcing restrictions against departing employees or business partners and challenging restrictions that are unreasonably wide
Software and IT contract disputes — including failed system implementations, software licence disputes, and SaaS agreement termination claims
Construction and engineering contract disputes — including delays, variations, defects, payment disputes, and termination claims
Commercial lending and financing disputes — between business parties — including lender-borrower disputes, guarantee enforcement, and disputes over facility terms
Joint venture agreement breaches — see our dedicated Joint Venture Disputes page for detailed coverage

The Law Governing Contract Disputes in Malaysia

Commercial contract disputes in Malaysia are governed primarily by the Contracts Act 1950, the Sale of Goods Act 1957, and the common law of contract as developed through Malaysian and English case law. Disputes are heard in the Sessions Court (for claims up to RM1 million) or the High Court (for claims above RM1 million or where other remedies are sought). The Civil Law Act 1956 governs the award of interest on money judgments.

The limitation period for contract claims in Malaysia is generally six years from the date of breach under the Limitation Act 1953 — though the clock may run from a different date depending on the nature of the breach and whether the breach was concealed. We advise on limitation from the outset to ensure your right to claim is protected.

Remedies Available for Breach of Contract

The primary remedy for breach of contract in Malaysia is damages — compensation for the loss caused by the breach. The rules on remoteness (established in Hadley v Baxendale and developed by the Malaysian courts) determine what categories of loss are recoverable. Recoverable losses typically include:

Direct loss — the difference between what was contracted for and what was actually received
Consequential loss — including loss of profit and loss of business opportunity, provided they were in the reasonable contemplation of the parties at the time of contracting
Interest — under section 11 of the Civil Law Act 1956 at a rate the court considers appropriate from the date the cause of action arose

In some cases, specific performance — a court order compelling the defaulting party to perform the contract — is available. We advise on when specific performance is a realistic remedy and when a damages claim is the more appropriate focus.

Frequently Asked Questions

Can I claim for lost profits if another party breached our contract?

Yes, provided the lost profits were within the reasonable contemplation of both parties at the time the contract was made — under the remoteness principles in section 74 of the Contracts Act 1950 and the common law. You must also take reasonable steps to mitigate your loss. We advise on the recoverable loss categories specific to your situation.

The other party is claiming I breached the contract, but I disagree. What are my options?

You may have defences including that your performance was excused by the other party's own breach, that the purported breach was a repudiation you were entitled to accept, that the contract was frustrated, or that the alleged breach was not sufficiently serious to entitle the other party to terminate. We review the full factual and contractual picture and advise on your defence strategy.

What is the limitation period for breach of contract claims in Malaysia?

Under the Limitation Act 1953, the general limitation period for contract claims is six years from the date of breach. However, the date from which time runs can be affected by the nature of the breach, any ongoing breach, and the discovery rule in cases where the breach was concealed. Contact us promptly — allowing a claim to become time-barred is one of the most avoidable legal disasters.

Can I recover my legal fees if I win a breach of contract case?

In Malaysia, the successful party in civil litigation is generally entitled to a costs order against the losing party. However, court-awarded costs are taxed on a party-to-party basis and typically do not cover 100% of actual legal fees. We advise on the realistic costs recovery position for your specific matter.