Podcast
Questions and Answers
What type of breach occurs when a party refuses to perform a contract?
What type of breach occurs when a party refuses to perform a contract?
- Inability to perform contract
- Refusal to perform contract (correct)
- Breach of fundamental term
- Anticipatory breach
What is the result of a breach of fundamental term of a contract?
What is the result of a breach of fundamental term of a contract?
- A lawsuit is filed against the breaching party
- The contract is terminated via breach of fundamental terms (correct)
- The contract remains valid
- The non-breaching party is penalized
What type of term gives a person the right to terminate a contract by breach?
What type of term gives a person the right to terminate a contract by breach?
- Warranty
- Condition (correct)
- Fundamental term
- Innominate term
What is an anticipatory breach of a contract?
What is an anticipatory breach of a contract?
What action by the Respondent constitutes acceptance of the Appellant's repudiation?
What action by the Respondent constitutes acceptance of the Appellant's repudiation?
What section of the Contract Act deals with the instances of breach of contract?
What section of the Contract Act deals with the instances of breach of contract?
What is the consequence of a breach of an innominate term with a serious effect?
What is the consequence of a breach of an innominate term with a serious effect?
What is the right that arises when a breach of a warranty occurs?
What is the right that arises when a breach of a warranty occurs?
What is the term used to describe a breach that gives the right to terminate the contract?
What is the term used to describe a breach that gives the right to terminate the contract?
Which case is associated with the concept of 'fundamental breach'?
Which case is associated with the concept of 'fundamental breach'?
What is the effect of a fundamental breach on the contract?
What is the effect of a fundamental breach on the contract?
What is the consequence of a breach of an innominate term with no serious effect?
What is the consequence of a breach of an innominate term with no serious effect?
What is the term for the refusal of a party to perform a promise wholly?
What is the term for the refusal of a party to perform a promise wholly?
What is the consequence of a party's refusal to perform a promise in its entirety?
What is the consequence of a party's refusal to perform a promise in its entirety?
What is the term for the cancellation of a contract?
What is the term for the cancellation of a contract?
In the case of Cheng Chuan Development Sdn Bhd v. Ng Ah Hock, what did the Respondent pay?
In the case of Cheng Chuan Development Sdn Bhd v. Ng Ah Hock, what did the Respondent pay?
What is the term for a breach of a fundamental term of a contract?
What is the term for a breach of a fundamental term of a contract?
What did the Appellant do after selling the house at the original price?
What did the Appellant do after selling the house at the original price?
What is the term for the end of a contract?
What is the term for the end of a contract?
What did the Appellant do to the Respondent in the case of Cheng Chuan Development Sdn Bhd v. Ng Ah Hock?
What did the Appellant do to the Respondent in the case of Cheng Chuan Development Sdn Bhd v. Ng Ah Hock?
Study Notes
Discharge of Contract via Breach
- Discharge of contract occurs when a party refuses to perform or disables themselves from performing their promise in its entirety.
Terminology
- Repudiation: refusal to perform a promise
- Termination: putting an end to the contract
- Rescission: cancellation of a contract
- Fundamental Breach: a serious breach that gives the innocent party the right to terminate the contract
- Breach of Fundamental Terms: a breach of essential terms that allows the innocent party to terminate the contract
Effect of Refusal of Party to Perform Promise
- Section 40 of the Contracts Act 1950: a party may put an end to the contract if the other party refuses to perform or disables themselves from performing their promise.
- Example: Cheng Chuan Development Sdn Bhd v Ng Ah Hock (2 MLJ 222): a housing developer's attempt to increase the price of a house and return of the booking fee was considered a repudiation of contract, and the contract was terminated.
Instances of Breach of Contract
- Breach of fundamental term of contract
- Refusal to perform contract
- Inability to perform contract
- Anticipatory breach
Classification of Terms
- Condition: a term that gives the right to terminate the contract if breached
- Warranty: a term that only allows for damages if breached
- Innominate terms: a term that may or may not give the right to terminate the contract depending on the seriousness of the breach
Rights that Arise when a Breach Occurs
- Condition: terminate the contract and claim damages
- Warranty: only claim damages
- Innominate terms: terminate the contract and claim damages if the breach has a serious effect, or only claim damages if the breach does not have a serious effect
Fundamental Breach
- Defined as a serious breach that gives the innocent party the right to terminate the contract and claim damages
- Example: Suisse Atlantique Societe v. NV Rotterdamsche Kolen Centrale (fundamental breach is a shorthand for a breach that is so serious that it goes to the root of the contract)
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Description
Test your understanding of contract law, focusing on discharge via breach, terminology, instances of breach, and remedies. This quiz is relevant for law students, especially those in Semester 2 2024/2025.
