What Does ‘Lookout’ Mean in a Force Majeure Clause in a Malaysian Sale and Purchase Agreement?

Question from fhs, What Does ‘Lookout’ Mean in a Force Majeure Clause in a Malaysian Sale and Purchase Agreement?

Answer from AI:

In the context of a Sale and Purchase Agreement, particularly in Malaysia, the term ‘lookout’ is not a standard term used in force majeure clauses. Force majeure clauses generally refer to unforeseeable circumstances that prevent someone from fulfilling a contract. However, the term ‘lookout’ might be specific to the contract you’re referring to, and its meaning should be defined within the contract itself.

Understanding Force Majeure Clauses

Force majeure clauses are contractual provisions that address circumstances where performance becomes impossible or impracticable due to events that could not have been foreseen or prevented. These events typically include natural disasters, wars, strikes, riots, or government actions.

In Malaysia, the interpretation of force majeure clauses is governed by the principles of contract law, as outlined in the Contracts Act 1950. According to this Act, a contract may be discharged if it becomes impossible to perform due to an event that the parties could not have anticipated when they entered into the contract.

Interpreting ‘Lookout’ in a Contract

As ‘lookout’ is not a standard term in force majeure or other contractual clauses, its meaning would depend on the context in which it is used in the contract. It could potentially refer to a party’s responsibility to monitor or ‘look out’ for certain events or circumstances.

It is crucial to consult with a legal professional to understand the specific meaning and implications of this term in your contract.

Seeking Legal Advice

If you’re unsure about the meaning of ‘lookout’ or any other terms in your Sale and Purchase Agreement, it’s recommended to seek legal advice. A lawyer can help you understand the terms of your contract and your rights and obligations under it.

Resources

• The Contracts Act 1950 provides the general legal framework for contracts in Malaysia.
• The Malaysian Bar provides a comprehensive list of Malaysian laws, which can be a useful resource for understanding the legal context of your contract.