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INSTITUTE
SUBTOPIC 5:
DISCHARGE & REMEDIES
2.5
Discharge of remedies
Source: Syed Ahmad Alsagoff, Principles of the law of contract in Malaysia, Lexis Nexis, 2005; Contract Act 1950.
PERFORMANCE
As a general rule, performance of a contract must be exact and
precise and should be in accordance with what the parties had
promised.
Perform by whom?
>
By parties: S 38(1) CA 1950 provides that parties to a
contract must either perform or offer to perform their
respective promises, unless such performance has
dispensed with any law.
> S. 38(2) CA 1950 - Representative if parties died
Source: Syed Ahmad Alsagoff, Principles of the law of contract in Malaysia, Lexis Nexis, 2005; Contract Act 1950.
CONTINUE
Performance may be from a third party and not necessarily
from the promisor:
> S. 42 CA 1950 provides that when a promisee accepts
performance of the promise from a third person, he cannot
afterwards enforce it against the promisor.
Source: Syed Ahmad Alsagoff, Principles of the law of contract in Malaysia, Lexis Nexis, 2005; Contract Act 1950.
CONTINUE
Performed by Whom?
S. 38(1)- Parties
S. 38(2)- Representative if parties died
S. 41- requirement tt performance by promisor himself
Promisor must perform
In other case, may employ competent person to perform
Issue: consideration may move from other person.
CONTINUE
Time & Place of Performance
S. 47-50
GR= at specified time & place
If time X specified- any reasonable time (s.47)
If place X specified- promisee must specify (s. 50 & 51)
CONTINUE
S. 52-55
Simultaneous performance
Promisor need not perform his promise unless,
Promisee is ready/willing to perform his promise
BREACH
Source: Syed Ahmad Alsagoff, Principles of the law of contract in Malaysia, Lexis Nexis, 2005
CONTINUE
2 Options to Innocent Party:
1. Discharge
May refuse further performance of his oblign
Resist any action by defaulting party
Recover any money tt he has paid
Sue for damages if suffered any
Alternatively, sue on quatum meruit for value of work
done/goods supplied
2. X Discharge
Must perform his contractual oblign
If nature of breach disentitles to discharge (warranty)entitled to damages
LAW 243 COMMERCIAL LAW
Source: Syed Ahmad Alsagoff, Principles of the law of contract in Malaysia, Lexis Nexis, 2005.
CONTINUE
Not all breach enables to terminate contract
Depends on nature of the term breached
Source: Syed Ahmad Alsagoff, Principles of the law of contract in Malaysia, Lexis Nexis, 2005.
Source: Lee Mei Pheng & Ivan Jeron Detta, Commercial law, Oxford Fajar, 2011.
1.
DAMAGES
Source: Lee Mei Pheng & Ivan Jeron Detta, Commercial law, Oxford Fajar, 2011.
2.
QUANTUM MERUIT
Source: Lee Mei Pheng & Ivan Jeron Detta, Commercial law, Oxford Fajar, 2011.
CONTINUE
Available when:
1. Express/implied agreement to provide services but X
agreement to price
2. Parties X perform obligation under contract, but a new
contract inferred from their conduct to have replaced the
original- QM for work done
3. Contract terminated by breach after performance of
obligation by one party- sue on QM for value of work
done
4. Person is prevented from completing his obligation by
other party.
LAW 243 COMMERCIAL LAW
Source: Lee Mei Pheng & Ivan Jeron Detta, Commercial law, Oxford Fajar, 2011.
3.
SPECIFIC PERFORMANCE
4.
INJUNCTION
Source: Lee Mei Pheng & Ivan Jeron Detta, Commercial law, Oxford Fajar, 2011.
QUIZ
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Thank you!