The agreement on the establishment of lighthouse on Pisang Island by British was initiated subsequentto the agreement between Sultan of Johor and Strait Settlement Government in February 1885. Theagreement gives right and possession to the Strait Settlement Government to operate the lighthouseperpetuity. The agreement inherited by Singapore. Malaysia has full sovereignty over Pisang Islandand was acknowledged by the Parliament of Singapore in 2003. GNSS carriage onboard commercialvessels has turned the lighthouse as irrelevant for the current navigational needs. Furthermore, radartower is required to support the VTIS operation in the Strait of Malacca. The objective of researchis to identify whether the irrelevancy of existing lighthouse will affect the contract between Malaysiaand Singapore by looking into the principle of contract law. In addition, the research aims to identifythe available solutions for Malaysia to gain possession on the lighthouse?s site without jeopardizingthe right of Singapore. In achieving the objective and solution of research, the paper discusses andexamines the situation by referring to the main sources of law such as statues, cases, and principlesunder the law of contract and other related laws. It is doctrinal research that descriptive in nature
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