EXCLUSION CLAUSE UNDER MALAYSIAN SALE OF GOODS ACT 1957: AN OBSTACLE TO BUYER’S PROTECTION IN A CONTRACT OF SALE OF GOODS

Abstract

The mass production and distribution of goods across border demanded the producers to produce goods in large quantities without considering the quality of goods. The low quality of goods on the market will affect the buyers. Hence the existing law is important to protect the buyers when dealing with goods on the market. The Sale of Goods Act 1957 is the principal Act that applies to contracts for the supply of goods in Malaysia. In a contract of supply of goods, implied conditions and warranties are essential to cater to issues relating to the seller’s civil liability for goods. However, the existence of section 62 in the Sale of Goods Act 1957 weakens the protection of buyers under the contract of sale of goods. Section 62 provides for exclusion clause, which has been used widely by the seller as a tool to exclude liability by manipulating the method of drafting a contract. Adopting a doctrinal approach, this article analyses the provision under section 62 of the Sale of Goods Act 1957. The article aims to assess whether the provision is detrimental to the buyer. It is submitted the present section 62 Sale of Goods Act 1957 is detrimental to the buyer. Thus, the provision needs to be repealed to protect the buyers when dealing with sellers in the market.