How to Use the ILAC Method for Contract Law Problem Questions in Malaysia
Business law problem questions in Malaysian foundation and diploma programmes rarely test whether you can recite the Contracts Act 1950. They test whether you can take messy facts, such as a WhatsApp chat about selling a machine, and reach a reasoned answer. The ILAC method is the most reliable way to do that.
Quick answer: ILAC stands for Issue, Law, Application and Conclusion. For each legal question, state the precise issue, set out the relevant section of the Contracts Act 1950 with a supporting case, apply the rule to specific facts, and give clear advice. Where facts are ambiguous, argue both readings before concluding.
Why ILAC matters in Malaysian business law assignments
Many business law briefs, including the LAW30405 / LAW30205 Introduction to Business Law assignment, require ILAC and mark you on two things: knowledge of the law and application of the law. A student who knows every rule but never links it to the facts will cap their marks at the lower bands.
| Step | What to write | Typical length per issue |
|---|---|---|
| Issue | One sentence naming the legal question | 1 to 2 lines |
| Law | Statute section plus one or two cases | About 25% of the answer |
| Application | Each rule matched to a specific fact | About 50% of the answer |
| Conclusion | Clear advice to the client | 2 to 4 lines |
Step 1: spot the issues precisely
Weak answers write “the issue is whether there is a contract”. Strong answers break that down. In an offer and acceptance problem, the real issues might be whether an advertisement is an offer, whether a reply is a counter-offer, and whether a revocation was effective.
Step 2: state the law with statute first
In Malaysia, start with the Contracts Act 1950 and support it with cases. Common provisions in introductory contract questions include:
| Topic | Contracts Act 1950 | Supporting case |
|---|---|---|
| Proposal and acceptance | s 2(a), s 2(b) | Harvey v Facey [1893] AC 552 |
| Absolute acceptance | s 7(a) | Hyde v Wrench (1840) 3 Beav 334 |
| Communication and revocation | ss 4, 5 and 6 | Byrne & Co v Van Tienhoven (1880) 5 CPD 344 |
| Consideration | s 2(d) | Kepong Prospecting Ltd v Schmidt [1968] 1 MLJ 170 |
| Exceptions to consideration | s 26 | Apply the wording of each limb to the facts |
One important Malaysian point: under s 2(d), past consideration can count if the act was done at the promisor’s desire. This differs from the general English rule, so do not import English principles without checking the Act.
Step 3: apply rules to facts, line by line
Application earns half the marks. Use the facts as evidence. For example, if a seller says “I would accept RM7,800”, explain why that statement can be a new proposal under s 2(a). If the buyer then asks whether a lower price would work, explain the two possible readings: a counter-offer under Hyde v Wrench, or a request for information under Stevenson, Jacques & Co v McLean (1880) 5 QBD 346. Then explain which reading the wording supports.
Our LAW30405 ILAC sample on offer, acceptance and consideration shows this approach in full, for reference only.
Step 4: conclude with advice
The brief usually asks you to advise a named party. End each issue with a direct conclusion, such as “Cathy is likely to have a binding contract, and her remedy is damages”. If the answer depends on how a court reads an ambiguous fact, say so and state the most likely outcome.
Referencing cases correctly
- Give the full citation in italics the first time a case appears.
- Use the short case name, also in italics, afterwards.
- List statutes and cases in the reference list according to your institution’s Harvard guide.
- Mix source types, such as statutes, cases, textbooks and journal articles, because rubrics often reward range.
Common mistakes
- Writing the law section as a general essay before addressing the facts.
- Citing English cases without mentioning the Contracts Act 1950.
- Ignoring facts that point the other way.
- Exceeding the word count; many briefs allow only ±10%.
If you would like help structuring a problem question, see our law assignment help page. For a related legal skill, read our guide to writing a case note in Malaysia.
Reviewed by
Amirul Azam
2341- Completed Orders
MBA, University of Malaya. Covers management, organisational behaviour and international business. View Amirul Azam’s profile
Frequently asked questions
What does ILAC stand for?
Issue, Law, Application and Conclusion. It is a structured way to answer legal problem questions.
Is an advertisement an offer under Malaysian law?
Usually not. Advertisements are generally treated as invitations to treat, but the wording matters, so apply the facts.
Does past consideration count in Malaysia?
Under s 2(d) of the Contracts Act 1950, it can, if the act was done at the desire of the promisor.
Is a promise without consideration always void?
No. Section 26 sets out exceptions, including a promise to compensate someone who has already voluntarily done something for the promisor.
How many cases should I cite?
Follow your rubric. Higher bands often require a wider range and number of sources, so support every key rule.
Should I use headings for ILAC?
Yes, if your brief allows. Clear headings for each step make your reasoning easy to mark.
References
Byrne & Co v Van Tienhoven (1880) 5 CPD 344.
Contracts Act 1950 (Act 136). Kuala Lumpur: Percetakan Nasional Malaysia Berhad.
Harvey v Facey [1893] AC 552.
Hyde v Wrench (1840) 3 Beav 334.
Kepong Prospecting Ltd v Schmidt [1968] 1 MLJ 170.
Stevenson, Jacques & Co v McLean (1880) 5 QBD 346.
