Discharge of Contract by Breach.pdf

DISCHARGE OF CONTRACT VIA BREACH Athirah Mohd Anuar (Lecturer) Faculty of Law, UKM Here is where your presentation begins...

DISCHARGE OF CONTRACT VIA BREACH Athirah Mohd Anuar (Lecturer) Faculty of Law, UKM Here is where your presentation begins Semester 2 2024/2025 Discharge via 01 Terminology 02 Instances of breach of contract 03 Remedies  Istilah / Terminology Repudiation Penolakan Termination Penamatan Rescission Pembatalan Fundamental Breach Kemungkiran Asasi Breach of Fundamental Terms Kemungkiran Terma Asasi  Effect of refusal of party to perform promise wholly 40. When a party to a contract has refused to perform, or disabled himself from performing, his promise in its entirety, the promisee may put an end to the contract, unless he has signified, by words or conduct, his Section 40 acquiescence in its continuance. Contracts Act 1950 / Akta 40. Apabila suatu pihak bagi satu kontrak telah enggan Kontrak 1950 melaksanakan, atau telah tak membolehkan dirinya dari melaksanakan, janjinya pada keseluruhannya makan penerima janji bolehlah menamatkan kontrak itu, melainkan jika ia telah menunjukkan, dengan kata-kata atau kelakuan, persetujuannya untuk meneruskan kontrak itu.. Cheng Chuan Development Sdn Bhd v. Ng Ah Hock 2 MLJ 222 Appellant sold the house at the original price of RM49,500.00. Respondent paid the booking fee. Perayu kemudiannya cuba menaikkan harga rumah kepada RM85,000.00, dan memulangkan cek dan wang tempahan Responden. Federal Court held that a repudiation of contract occcurred when the Appellant wrote a letter to the Respondent to inform him of the price increase and their actions of returning the booking fee. Appellant / Respondent / It was further held that the Respondent (through his Housing Developer Purchaser lawyer) had accepted the repudiation by cashing the cheque (the returned booking fee). => Contract terminated via breach of fundamental terms  Instances of Breach of Contract (Important elements of S.40 CA) 1 2 3 4 Breach of Refusal to Inability to Anticipatory fundamental term perform contract perform contract Breach of contract Period when action Classification of terms Defendant’s actions Defendant’s actions occurred 1. Breach of fundamental term of the contract Condition Warranty What sort of terms give the right to a person to terminate the contract by breach? Innominate terms Rights that arise when a breach occurs: Condition Warranty Innominate terms Serious No serious effect effect Terminate the contract and claim Only claim damages damages Termimate the Only claim contract and damages claim damages 1. Breach of fundamental term of the contract Kemungkiran asasi ditafsirkan sebagai satu kemungkiran yang rapuh, yang memberi hak kepada pihak yang tidak bersalah untuk menganggap dirinya telah dilepaskan dari Fundamental Breach liabiliti Suisse Atlantique Societe “’fundamental breach’ -> shorthand D’armament Maritime SA v. expression for saying that a particular breach Rotterdamsche Kolen Centrale or breaches of contract by one party is or are 1 AC 361 such as to go to the root of the contract which entitles the other party to treat such breach or breaches as a repudiation of the whole contract” Breach of Fundamental Term An agreement to store the Plaintiff's chocolate at the Defendant's factory at a temperature of