law 1

4. To communicate with the Principal.
Section 167 Contract Act 1950:
It is a duty of an agent, in case of difficulty, to use all reasonable diligence in
communicating with his principal, and in seeking to obtain his instructions.
An Agent must use all reasonable diligence to communicate and to get the Principal’s
instruction. Exception is given in emergency cases – If Agent fails to communicate, he
may use his own discretion to safeguard the interest of his Principal.

5. An Agent must not let his personal interest conflicts with his duty.
Section 168 Contract Act 1950:
If an agent deals in his own account…without first obtaining the consent of his principal…
the principal may repudiate the contract…
In Wong Mung Wai v Wong Tham Fatt (1987), the 1st Defendant is an agent to the
plaintiff. He sold the principal’s shares below then market price to his own wife. The
agent (1st defendant) was in breach of duty.

6. Not to make any secret profit out of the performance of his duty.
Section 169 Contract Act 1950:
If an agent, without the knowledge of his principal, deals in the business of the agency on
his account instead of on account of his principal, the principal is entitled to claim from the
agent any benefit which may have resulted to him from the transaction.
Section 173 Contract Act 1950:
An agent who is guilty of misconduct…is not entitled to any remuneration…
Any gain by an agent without principal’s knowledge is a secret profit. Secret profit is a
bribe, any extra payment, secret commission or any financial advantage given by the 3rd
party to the agent. If Principal does not agree with the secret profits, the principal may
repudiate the contract made by the agent if it is disadvantageous to him, recover the secret
profit from the agent, refuse to pay commission or other remunerations, dismiss the agent
for breach of duty, sue the agent and 3rd party for any loss.
In Mahesan v Malaysian Government Officers Co-operative Housing Society Ltd. (1979)
court authorized respondent to choose either to recover the secret profit or the real loss
because agent is in breach by taking secret commission from the broker.

7. To pay to his Principal all sums received on his behalf.
Section 171 Contract Act 1950:
…the agent is bound to pay to his principal all sums received on his account.
However, exceptions are given under section 170 where an agent may retain or deduct
from the sums received on behalf of his principal for any advances made or expenses
incurred by him while carrying out his duty, his commission & other remunerations.
Section 174 Contracts Act 1950 also gives right to an agent to retain his principal’s property
until his remuneration is paid unless there is a contract to the contrary.

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8. Not to delegate his authority
Agent cannot employ another person to do his duty. It is known as maxim “delegatus non
potest delegare”. It means that a delegate cannot delegate unless when the principal
approves or consents to the delegation of the authority, or where it is presumed from the
conduct of the parties that the agent would have power to delegate his authority, or where
the custom or trade or business permits delegation, or where it is necessary to complete
the business, or where the act to be done is purely ministerial/clerical i.e. preparing
document which does not involve the exercise of discretion.

3.2 Duties of a principal
1. To pay the Agent commission and other remuneration agreed when due.

Section 172 Contract Act 1950:
…payment of any act is not due to an agent until completion of the act; but an agent may
detain monies received by him on account of goods sold,…although the sale may not be
actually complete.
Section 174 Contract Act 1950:
…an agent is entitled to retain goods, papers, and other property, … of the principal…until
amount due to him… has been paid.
In Tan Chiok Sing v Llian Fatt Sawmill Co. (1976), an agent is entitled to reasonable
remuneration even though the contract between his Principal and 3rd party fails.

2. To indemnify agent for lawful acts done in the exercise of his authority.
Section 175 Contract Act 1950:
An employer of an agent is bound to indemnify him against the consequences of all lawful
acts done by the agent in exercise of the authority conferred upon him.
Section 176 Contract Act 1950:
…an agent does an act in good faith, the employer liable to indemnify the agent against
consequences…it cause an injury to …third persons.
Section 177 Contract Act 1950:
…to do an act which is criminal, the employer is not liable …to indemnify.
Section 178 Contract Act 1950:
… must make compensation to his agent…injured caused… by the principal’s neglect…
In Kyall & Evatt v Lim Kim Keat (1928), an agent was hired to sell shares. The defendant
(principal) failed to disclose that certain shares cannot be obtained. Agent concluded a
contract to sell shares but he could not deliver and suffered loss. The agent claimed from
the principal for the loss. It was held that agent was entitled to be indemnified for the loss
because the Principal’s neglect of skill, the principal is legally bound to make compensation
to his agent in respect of that injury. However, if there is fraud, or the agent acts beyond
his duty or he is negligent, he is not entitled to be indemnified.

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4. Agent’s authorities & its relation to principal’s liabilities
Section 181 Contract Act 1950:
Where an agent does more than he is authorized to do,… the principal is not bound to
recognize the transaction.
Agent’s action will bind the Principal with third party with a condition that the Agent acts within
the power vested in him by his Principal. Agent’s authority can be classed into two, actual
authority and apparent authority.
Actual authority is an authority conferred expressly upon the agent by the principal either in
oral or in written. It may also be implied from express authority given by the principal, custom
and trade usage, circumstances of the case and conduct of the parties.
Apparent authority is an authority that an agent of that kind usually has. If an agent is acting
within his apparent authority, a principal is bound by the contract entered by the agent with
the third party if the principal is aware that an agent is acting beyond his actual authority but
does not stop him. In Freemen & Lockleyer v Buckhurst Park Property Ltd, Kapoor even
though without authority from the company hired a firm of architects and surveyors to do
some work for the company. The directors were aware of it but did nothing to stop him.
They also failed to inform the 3rd parties about Kapoor’s lack of authority. It was then held
by the court that the company was liable to pay architect firm. Kapoor had apparent authority
to act for the company.

5. Types of principal & its relation to agent’s authority
Types of principal can be inferred from agent’s action while he is contracting with the third
party. There are three types of principal, named principal, disclosed principal and undisclosed
principal. Named principal is a situation when the agent contracted as an agent and the
identity of the principal is made known to the 3rd party. Where a principal is named, a clear
agency relationship exists between agent and principal. So, agent incurs no right or liability
under the contract. Whatever done by the agent in the course of business will bind the
principal and he alone can sue and be sued by 3rd party.
Disclosed principal is a situation when an agent made known to the third party that he is an
agent but the identity of the principal is remains unknown. By the provision of section 183
Contract Act 1950, the principal is not responsible to the contract.
Undisclosed Principal on the hand is a situation where at the time of the contract made by the
agent, the existence of the principal is not disclosed to third party. The agent uses his own
name in the contract and the third party is under the impression that he is contracting
personally with the agent. In the event of breach, the principal may require the performance
of the contract from the third party and the third party has the right to sue principal or the
agent. If the Principal discloses his identity before the completion of the contract, the third
party may rescind the contract if he can prove that had he known the identity of the principal
or the agent was acting for somebody else, he would not have contracted.

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6. Termination of agency relation
An agency relation between a principal with his agent may be terminated in a few ways. When
agency relations terminated, an agent’s action will no longer bind the principal unless the third
party has no knowledge about the termination. Termination can either be:
1. By acts of the parties
The parties may by mutual agreement ends the relationship. If any of the parties, either the
agent or principal decides to terminate the agency, he must give reasonable notice to the
other party. Reasonable notice depends on the circumstances of the case. In Sohrobji v
Oriental Security Assurance, notice of 3 and a half months was inadequate to terminate 50
years agency relationship. If the agency is terminated by the Principal before the agreed time,
the Agent may claim for loss of commission, any expenses incurred while performing his duty
and damages if the termination is done without reasonable notice.
2 .By operation of law
There are 6 ways which an agency may be terminated under the operation of law:
1. When the business of agency is completed.
2. By the expiration period agreed by both parties
3. By death of Agent of Principal
4. By subsequent insanity of the Agent of Principal
5. By bankruptcy of the Principal
6. By frustration or by happening of an event which renders the agency unlawful.

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LEGAL ASPECT OF E-COMMERCE
1. Law governing e-commerce in Malaysia
2. Electronic Commerce Act 2006
3. Computer Crimes Act 1997
4. Financial Services Act 2017
5. Islamic Financial Services 2013
6. Digital Signature Act 1997

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1. Law governing e-commerce in Malaysia

(https://amcham.com.my/wp-content/uploads/36-Legal-Aspects-of-E-Commerce-in-Malaysia.pdf)

Online trade transaction, or in its current and commonly-used term, e-commerce, broadly
refers to commercial activity conducted with the aid of electronic devices. E-commerce
generally refers to electronic business transactions or trades which are wholly or partially
conducted over the internet.

As e-commerce grows and becomes a more viable and, to a certain extent, safer medium of
shopping/trading, it is an industry that requires a strong regulatory framework in order to
ensure, among others, accountability and consumer protection.

The relevant laws governing e-commerce transactions in Malaysia are:

No. Law Content

1. Electronic Commerce Act 2006 An Act to provide for legal recognition of electronic
(ECA 2006) messages in commercial transactions, the use of the
electronic messages to fulfill legal requirements and
to enable and facilitate commercial transactions

through the use of electronic means and other
matters connected therewith.

2. Consumer Protection Act 1999 (CPA The primary legislation on consumer protection in
1999) commercial activities including e-commerce.

3. Consumer Protection (Electronic Trade Regulations issued pursuant to the CPA 1999, which
Transactions) Regulations 2012 (CP prescribes a set of requirements to be adhered to
Regulations 2012) and complied with by ecommerce traders

4. Contracts Act 1950 (CA 1950) Act which governs contracts in Malaysia.

5. Sale of Goods Act 1957 (SOGA 1957) Act which governs the sale of goods in Malaysia.

E-commerce is also subject to other legislations, including:

No. Law Content
1. Computer Crime Act 1997 (CCA
An Act to provide for offences relating to the
1997) misuse of computers. Among others, it deals with
unauthorised access to computer material,
2. Digital Signature Act 1997 (DSA unauthorised access with intent to commit other
1997) offences and unauthorised modification of
computer contents.
3. Personal Data Protection Act 2010
Act which regulates the use of digital signatures
4. Trade Description Act 2011
5. Price Control and Anti-Profiteering Act Act which protects data and information collected
from consumers by traders from unauthorised use,
2011 i.e. without the consumers’ consent

Act which deals with, amongst others,
advertisements.

Act which generally deals with price display and
product labelling; and Weights & Measures Act
1972, which deals with weighting and measuring
processes.

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There are legislations which are indirectly relevant to e-commerce, such as:

No. Law Content

1. Registration of Businesses Act 1956 Act deals with registration of businesses including
(ROBA 1956) online businesses

2. Companies Act 2016 (CA 2016) Act that deals with the incorporation and
registration of companies carrying on businesses in
Malaysia, including online businesses

3. Financial Services Act 2013 and Act that recognise electronic money as a payment
Islamic Financial Services Act instrument

2013

4. Direct Sales and Anti-Pyramid Scheme Act which recognise sales through electronic
Act 1993 transaction as a form of legal direct sales

5. Anti-Money Laundering, Anti-Terrorism Act deals with the issuance of electronic money.
Financing and Proceeds of Unlawful
Activities Act 2001

It shall also be noted that online businesses with any foreign involvement must comply with
the CP Regulations 2012, Guidelines for Foreign Participation in the Distributive Trade Services
in Malaysia and all other existing laws and regulations in Malaysia as applicable to physical
businesses.

2. Electronic Commerce Act 2006

The Electronic Commerce Act (ECA) 2006 (Act 658) that consist of 5 parts is the primary
legislation that provides legal recognition of electronic messages in commercial
transactions, the use of the electronic messages to fulfil legal requirements and to enable
and facilitate commercial transactions through the use of electronic means and other related
matters.

The Act applies to any commercial transaction ( e-banking Commercial transactions
transactions, electronic consumer transactions, credit card
transactions) conducted through electronic means including Section 5 ECA 2006 defines
commercial transactions by the Federal and State Governments. “commercial transactions’’ as a
However, it does not cover the transactions involving Power of single communication or
attorney, creation of wills and codicils, creation of trusts and multiple communications of a
negotiable instruments. commercial nature, whether
With the passing of ECA 2006, legal certainty is provided as to the contractual or not, which
validity and legality of electronic transactions. IT users and the includes any matters relating to
owners of information assets ought to get some assurance that their the supply or exchange of goods
activities are lawful, their communications and transactions valid or services, agency,
and their transactions are protected. investments, financing, banking
and insurance.

ECA 2006 sets up certain information security standards to be applied on the e-commerce
activities, among others, on legal recognition of electronic message, writing, and originality of
document. The effect of this is indirectly making an information security best practice as an
incentive for the legality of e-commerce itself.

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Legal recognition of electronic message
Part II of ECA 2006 provides the legal recognition of electronic messages.

PART II
LEGAL RECOGNITION OF ELECTRONIC MESSAGE

Legal recognition of electronic message
6. (1) Any information shall not be denied legal effect, validity or enforceability on the ground that it is wholly or partly in an

electronic form.

(2) Any information shall not be denied legal effect, validity or enforceability on the ground that the information is not
contained in the electronic message that gives rise to such legal effect, but is merely referred to in that electronic message,
provided that the information being referred to is accessible to the person against whom the referred information might be
used.

Formation and validity of contract
7. (1) In the formation of a contract, the communication of proposals, acceptance of proposals, and revocation of proposals and

acceptances or any related communication may be expressed by an electronic message.

(2) A contract shall not be denied legal effect, validity or enforceability on the ground that an electronic message is used in its
formation.

As an illustration, people who are parties to an e-transaction such as online auction are bound
by the terms of contract stipulated in an electronic format such as those on the auction
provider’s website, as long as that information (i.e. the online terms) are accessible and
available for subsequent reference.

Fulfillment of legal requirements by electronics means
Part III of ECA 2006 provides for the fulfillment of legal requirements by electronics means
for electronic commerce. Section 8 until section 16 includes provisions relating to requirements
of information to be in writing, signature, seal, witness, original form, retention of document,
copy of document, be in prescribed form and service & delivery.

PART III
FULFILLMENT OF LEGAL REQUIREMENTS BY ELECTRONICS MEANS

Writing
8. Where any law requires information to be in writing, the requirement of the law is fulfilled if the information is contained in

an electronic message that is accessible and intelligible so as to be usable for subsequent reference.

Signature
9. (1) Where any law requires a signature of a person on a document, the requirement of the law is fulfilled, if the document is in

the form of an electronic message, by an electronic signature which-
(a) is attached to or is logically associated with the electronic message;
(b) adequately identifies the person and adequately indicates the person's approval of the information to which the

signature relates; and
(c) is as reliable as is appropriate given the purpose for which, and the circumstances in which, the signature is required.

(2) For the purposes of paragraph (1)(c), an electronic signature is as reliable as is appropriate if-
(a)the means of creating the electronic signature is linked to and under the control of that person only;
(b)any alteration made to the electronic signature after the time of signing is detectable; and
(c)any alteration made to that document after the time of signing is detectable.

(3) The Digital Signature Act 1997 [Act 562] shall continue to apply to any digital signature used as an electronic signature in
any commercial transaction.

Seal
10. (1) Where any law requires a seal to be affixed to a document, the requirement of the law is fulfilled, if the document is in the

form of an electronic message, by a digital signature as provided under the Digital Signature Act 1997.

(2) Notwithstanding subsection (1), the Minister may, by order in the Gazette, prescribe any other electronic signature that fulfills
the requirement of affixing a seal in an electronic message.

Witness
11. Where any law requires the signature of a witness on a document, the requirement of the law is fulfilled, if the document is in

the form of an electronic message, by an electronic signature of the witness that complies with the requirements of section 9.

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Original
12. (1) Where any law requires any document to be in its original form, the requirement of the law is fulfilled by a document in the

form of an electronic message if-
(a) there exists a reliable assurance as to the integrity of the information contained in the electronic message from the

time it is first generated in its final form; and
(b) the electronic message is accessible and intelligible so as to be usable for subsequent reference.

(2) For the purposes of paragraph (1)(a)-
(a) the criteria for assessing the integrity of the information shall be whether the information has remained complete and
unaltered, apart from the addition of any endorsement or any change which arises in the normal course of communication,
storage and display; and
(b) the standard of reliability required shall be assessed in the light of the purpose for which the document was generated and in
the light of all other relevant circumstances.

Retention of document
13. Where any law requires any document to be retained, the requirement of the law is fulfilled by retaining the document in the

form of an electronic message if the electronic message-
(a) is retained in the format in which it is generated, sent or received, or in a format that does not materially change the

information contained in the electronic message that was originally generated, sent or received;
(b ) is accessible and intelligible so as to be usable for subsequent reference; and
(c) identifies the origin and destination of the electronic message and the date and time it is sent or received.

Copy
14. Where any law requires any document to be retained, served, sent or delivered in more than one copy, the requirement of the
law is fulfilled, if the document is in the form of an electronic message, by retention, service, sending or delivery of the document
in one copy.

Prescribed form
15. Where any law requires any document to be in a prescribed form, the requirement of the law is fulfilled by a document in the

form of an electronic message if the electronic message is-
(a) formatted in the same or substantially the same way as the prescribed form;
(b) accessible and intelligible so as to be usable for subsequent reference; and
(c) capable of being retained by the other person.

Service and delivery
16. (1) Where any law requires any document to be served, sent or delivered, the requirement of the law is fulfilled by the service,

sending or delivery of the document by an electronic means if an information processing system is in place-
(a) to identify the origin, destination, time and date of service, sending or delivery; and
(b) for the acknowledgement of receipt,

of the document.

(2) This section does not apply to-
(a) any notice of default, notice of demand, notice to show cause, notice of repossession or any similar notices which are
required to be served prior to commencing a legal proceeding; and
(b) any originating process, pleading, affidavit or other documents which are required to be served pursuant to a legal
proceeding.

In the case of Yam Kong Seng & Anor v Yee Weng Kai [2014] , the plaintiffs had engaged the
services of the first defendant (‘the company’) through the second defendant (‘the
defendants’) to construct a factory. Due to the capital control requirements and in order to
facilitate progressive payments, the monies meant for the progressive payments amounting
to RM1,310,000 were deposited in the company’s account in RHB Bank Bhd. By December
1999 the construction of the factory was completed and after progressive payments had been
made, the company confirmed that the outstanding amount due to be refunded to the
appellant was RM589,055.61 (‘the outstanding sum’). However, the defendants failed to
refund the outstanding sum. On 14 November 2005 the plaintiffs had by a Short Messaging
Service (‘SMS’) demanded from the defendants the return of the outstanding sum. On 5
September 2006, the second defendant, by SMS (‘the defendants’ SMS’), sent to the plaintiffs
the following message: ‘Eddy sorry hear ur father death, regarding the loan repayment sorting
soon not 2 wory now Im in uk, London next week.’ As the outstanding sum was still not
refunded, the plaintiffs filed this action. The second defendant claimed that the plaintiffs’
cause of action arose in 1999 and since the writ was filed on 7 March 2008, the action was
time barred.

The Federal Court case of Yam Kong Seng & Anor v Yee Weng Kai revolves around an
acknowledgement of debt by SMS of a debt that was time barred. The Federal Court decided
on the following points:-

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1. The SMS though short, reflected the intention of the parties clearly and unambiguously.
There was an acknowledgement of a debt. There was no difficulty in putting into effect
what the parties had bargained for on reading the words of the SMS.

2. Requirement of being in writing - Sec 8 of the Electronic Commerce Act 2006 provides
that where any law requires information to be in writing, the requirement of the law is
fulfilled if the information is contained in an electronic message that is accessible and
intelligible so as to be usable for subsequent reference.

3. Requirement of acknowledgement to be signed - signatures need not be written. It is
suffice if there be any mark, written or not, which identifies the act of the party. The
court held that the fact the respondent admitted sending the SMS sealed his liability.
Further, sec 9 of the Electronic Commerce Act states that where the law requires a
signature of a person on a document, the requirement is fulfilled if the document is in
the form of an electronic message, by an electronic signature. Sec 5 of the ECA states
that electronic signature means any letter, character, number, sound, or other symbols
or any combination created in an electronic form adopted by that person as a signature.
The telephone number which the SMS was sent was confirmed that it came from the
respondent.

In the case of Tengku Ezuan Ismara bin Tengku Nun Ahmad & Anor v Lim Seng Choon David
[2017], when deciding that WhatsApp messages sent can constitute effective notice, the High
Court applied the Federal Court case Yam Kong Seng & Anor v Yee Weng Kai above.

SMS was also held to be admissible in evidence. In Flexi Homes Sdn Bhd v Atea Environment
Technology (M) Sdn Bhd [2017], plaintiff had tendered a certificate pursuant to section 90A
of the Evidence Act 1950 and thus, by the reason of the cases of Hanafi bin Mat Hassan v
Public Prosecutor [2006], Ahmad Najib Aris v PP [2009] and Lim Pang Cheong lwn Tan Sri
Dato’ (Dr.) Rozali Bin Ismail & Yang Lain [2010], as well as section 2(1), 5, 6 and 8 of the
ECA 2006 as interpreted in Yam Kong Seng & Anor v Yee Weng Kai [2014], the High Court
ruled that the SMS is admissible in evidence.

Communications of electronic message
Part IV of ECA 2006 concerns the communication of electronic messages.

PART IV
COMMUNICATIONS OF ELECTRONIC MESSAGE

Attribution of electronic message
17. (1) An electronic message is that of the originator if it is sent by the originator himself.

(2) As between the originator and the addressee, an electronic message is deemed to be that of the originator if it is sent by-
(a) a person who has the authority to act on behalf of the originator in respect of that electronic message; or
(b) an information processing system programmed by, or on behalf of, the originator to operate automatically.

(3) As between the originator and the addressee, the addressee is entitled to regard an electronic message as being that of the
originator, and to act on that presumption, if-
(a) the addressee properly applies an authentication method agreed between the originator and the addressee for ascertaining
whether the electronic message was that of the originator; or
(b) the electronic message as received by the addressee resulted from the actions of a person whose relationship with the
originator or any agent of the originator enabled that person to gain access to an authentication method used by the
originator to identify electronic message as its own.

(4) Subsection (3) does not apply if-
(a) the addressee has received a notice from the originator that the electronic message is not that of the originator and has
reasonable time to act accordingly; or
(b) the addressee knew or should have known that the electronic message was not that of the originator had he exercised
reasonable care or used any authentication method agreed between the originator and the addressee.

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Contents of electronic message
18. Where an addressee receives an electronic message, the addressee is entitled to regard the electronic message as being what the

originator intended to send, and to act on that presumption, unless the addressee knew or should have known, had he exercised
reasonable care or used any agreed procedure, that the transmission resulted in any error in the electronic message as received.

Each electronic message to be regarded separately
19. Where an addressee receives an electronic message, the addressee is entitled to regard each electronic message received as a

separate electronic message and to act on that presumption, unless the addressee knew or should have known, had he exercised
reasonable care or used any agreed procedure, that the electronic message was a duplicate.

Time of dispatch
20. Unless otherwise agreed between the originator and the addressee, an electronic message is deemed sent when it enters an

information processing system outside the control of the originator.

Time of receipt
21. Unless otherwise agreed between the originator and the addressee, an electronic message is deemed received-

(a)where the addressee has designated an information processing system for the purpose of receiving electronic messages, when the
electronic message enters the designated information processing system; or

(b)where the addressee has not designated an information processing system for the purpose of receiving electronic messages, when
the electronic message comes to the knowledge of the addressee.

Place of dispatch
22. Unless otherwise agreed between the originator and the addressee, an electronic message is deemed sent from the originator's place

of business, and-
(a)where the originator has more than one place of business, from the place of business that has the closest relationship with the

transaction or where there is no place of business that has the closest relationship with the transaction, from the originator's
principal place of business; or
(b)where the originator does not have a place of business, from the originator's ordinary place of residence.

Place of receipt
23. Unless otherwise agreed between the originator and the addressee, an electronic message is deemed received at the addressee's place

of business, and-
(a)where the addressee has more than one place of business, at the place of business that has the closest relationship with the

transaction or where there is no place of business that has the closest relationship with the underlying transaction, at the
addressee's principal place of business; or
(b)where the originator does not have a place of business, at the addressee's ordinary place of residence.

Acknowledgement of receipt
24. (1) This section applies where, on or before sending an electronic message, or in the electronic message, the originator has requested

or agreed with the addressee that receipt of the electronic message is to be acknowledged.

(2) Where the originator has requested or agreed with the addressee that receipt of the electronic message is to be acknowledged,
the electronic message is treated as though it has never been sent until the acknowledgement is received.

(3) Where the originator has not agreed with the addressee that the acknowledgement be given in a particular form or by a
particular method, an acknowledgement may be given by-
(a)any communication by the addressee, automated or otherwise; or
(b)any conduct of the addressee sufficient to indicate to the originator that the electronic message has been received.

(4) Where the acknowledgement has not been received by the originator within the time specified or agreed or, if no time has been
specified or agreed, within a reasonable time, the originator may-
(a) give notice to the addressee stating that no acknowledgement has been received and specifying a reasonable time by which
the acknowledgement must be received; and
(b) if the acknowledgement is not received within the time specified in paragraph (a), give notice to the addressee to treat the
electronic message as though it had never been sent and exercise any other rights he may have.

(5) Where the originator receives the addressee's acknowledgement of receipt, it is presumed that the addressee received the related
electronic message.

(6) Where the received acknowledgement states that the related electronic message fulfills technical requirements, either agreed
upon or set forth in applicable standards, it is presumed that those requirements have been fulfilled.

The High Court case of Odin Oilfield Services Sdn Bhd v Omega Completion Technology Ltd
[2015] is on section 20-23 of ECA 2006. The case concerned a notification of repudiation of a
contract via communication by email. In Odin Oilfield Services Sdn Bhd v Omega Completion
Technology Ltd [2015] 7 CLJ 616, the High Court refused leave for service of a writ out of
jurisdiction when it held that the contract between the plaintiff (whose place of business was
in Malaysia) and defendant (based in Scotland) was repudiated by the defendant in Scotland,
which was the place where the defendant had made the decision to terminate the agreement
and communicated it by sending the letter of termination as an attachment to an e-mail to
the plaintiff.

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3. Computer Crimes Act 1997____________________________________
An Act to provide for offences relating to the misuse of computers.
The Computer Crimes Act 1997, effective as of the 1st of June 2000, created several offences
relating to the misuse of computers. Among others, it deals with:
1. Unauthorised access to computer material.
2. Unauthorised access with intent to commit other offences.
3. Unauthorised modification of computer contents.
The Act also provides that the commission of these offences extra-territorially. Meaning that
it is punishable even committed outside Malaysia.
Once it is proven that the accused has custody or control (had knowledge of its whereabouts,
had access to it and could any opportune moment of his choice have obtained possession of
it or the capacity to direct its disposal) of the programme, data or other information that he
or she was not duly authorized, the accused has to prove otherwise.
The maximum sentence that court may impose is a term of imprisonment not exceeding 5
years or a fine of up to RM50,000, or both.

4. Financial Services Act 2013 and Islamic Financial Services 2013
The regulatory and supervisory framework of Malaysia enters a new stage of its development
as the Financial Services Act 2013 (FSA) and Islamic Financial Services Act 2013 (IFSA) come
into force on 30 June 2013.
The Financial Services Act 2013 which enacted to provide for the regulation and supervision
of financial institutions, payment systems and other relevant entities and the oversight of the
money market and foreign exchange market to promote financial stability and for related,
consequential or incidental matters.
With regard to electronic banking, the Act provides for the regulation and supervision of
payment systems.
The laws provide Bank Negara Malaysia (BNM) with the necessary regulatory and supervisory
oversight powers to designated payment system or to revoked any payment system when
BNM is of the opinion that it may affect the payment systems in Malaysia or it is necessary to
maintain integrity, efficiency and reliability of the payment instrument.
The FSA applies to a person outside Malaysia who is an operator of a payment system which
accepts payment instructions or settlements instructions from participants in Malaysia.

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5. Digital Signature Act 1997
A digital signature is not a handwritten signature. A digital signature bears no resemblance to
a person’s actual signature.
A ‘digital signature’ under the DSA is limited rather narrowly to a “signature which uses an
asymmetric cryptosystem that is verified by reference to the public key listed in a valid
certificate issued by a licensed certification authority”.
The DSA provides legal recognition of a technologically-specific type of electronic signature,
known as ‘digital signature’, to be as legally binding as a document signed with a handwritten
signature, an affixed thumb-print or any other mark.

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