Preview

Part C the Issue in This Question Is to Determine Whether J Cons Sdn Bhd Has Any Methods Provided Under the Contracts Act 1950 to Discharge Itself from Its Obligations Under the Contract with Datuk Kaya.

Good Essays
Open Document
Open Document
1141 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Part C the Issue in This Question Is to Determine Whether J Cons Sdn Bhd Has Any Methods Provided Under the Contracts Act 1950 to Discharge Itself from Its Obligations Under the Contract with Datuk Kaya.
Based on the Contracts Act 1950, there are four ways to discharge a contract. The methods are performance, agreement, breach and frustration.

Performance
The general rule of performance defines that the performance must be strictly in accordance with the terms of the contract unless the parties have agreed otherwise. A promisor must be prepared to carry out his obligation at the time and place at which he has agreed to do so.

Agreement
A contract can be discharge by consent, under Section 63 and Section 64 of the Contracts Act 1950. Section 63 of the Contracts Act 1950 states ‘if the parties to a contract agree to substitute a new contract for it, or to rescind or alter it, the original contract need not be performed’. Illustration (b) provides an example of a debtor enters into an arrangement with his creditor, this is a new contract and extinguishes the old. Section 64 of the Contracts Act 1950 states ‘every promise may dispense with or remit, wholly or in part, the performance of the promise made to him, or may extend the time for such performance, or may accept instead of it any satisfaction which he thinks fit. Illustration (b) portrays an example of a creditor agree and accept payment of a smaller sum in discharge or satisfaction of a large debt from his debtor.

Breach
When a promisor fails to perform his promises or obligations under the contract, he perpetrates a breach of contract. Section 40 of the Contracts Act 1950 states ‘when a party to a contract has refused to perform, or disabled himself from performing, his promise in its entirety, the promise may put an end to the contract, unless he has signified, by words or conduct, his acquiescence in its continuance’. Following the principles enunciated in Choo Yin Loo v. Visuvalingam Pillay, a breach of an essential part of the contract would entitle the innocent party to repudiate the contract. The innocent party has the right to claim damages under Section 76 of the Contract Act 1950, which

You May Also Find These Documents Helpful

  • Powerful Essays

    A Breach of contract is the nonperformance of a contractual duty. The breach is material when performance is not at least substantial. If there is a material breach, then the non-breaching party is excused from the performance of contractual duties and can sue from damages resulting from the breach. (Clarkson, Miller and Cross, Business Law Text and Cases, page 324).…

    • 1094 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Contracts: definition; types; verbal, written, standard form; offers — distinguishing invitations to treat; counter-offers; communication of offers; acceptance; the battle of the forms; consideration and the Contracts (Rights of Third Parties) Act 1999; capacity as applied to business situations; application of Requirements…

    • 2641 Words
    • 11 Pages
    Good Essays
  • Satisfactory Essays

    Unit 14 P6

    • 132 Words
    • 1 Page

    All consequences of the breach of the condition are deemed to be sufficiently serious to justify termination. The buyer cannot terminate the contract if the non-conformity is a minor defect and slight breach. Slight breach is treated as a breach of warranty in the business sales contract. Slight breach is the breach when the conse-quences of breach do not go to the root of the contract or detriment the purpose of the contract. If the buyer accepts the goods there is no right of termination because termi-nation remedy required…

    • 132 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    If the non-performing party, in its sole judgment, is prevented directly or indirectly on account of any cause beyond its control, from delivering the Goods at the time specified, then the Seller will have the right to terminate this Agreement by notice in writing to the Buyer if no remedy can be provided. The notice to Buyer will be accompanied by full refund of all sums paid by the Buyer pursuant to this Agreement and vice versa if the Buyer doesn’t perform to its obligations.…

    • 1136 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Lwc1 Study Plan

    • 8919 Words
    • 36 Pages

    1. What conditions would constitute a discharge of a contract? An unjustifiable failure to perform all or some part of a contractual duty without a valid excuse…

    • 8919 Words
    • 36 Pages
    Good Essays
  • Good Essays

    contract can be fired for good cause, bad cause, or no cause at all. In an at-will situation, either…

    • 881 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Little Legal Analysis

    • 372 Words
    • 2 Pages

    Conditions, Mogul broken the contract and deprived Horatio of substantial benefit, so it’s treated as a condition.…

    • 372 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Whistle Blower Case Study

    • 693 Words
    • 3 Pages

    54) Unless the Defendant can produce a valid resignation that meets the requirements of the Contract the contract has been breached.…

    • 693 Words
    • 3 Pages
    Good Essays
  • Good Essays

    • Specific performance is a court order directing a party to carry out the obligations he or she had contractually promised to do. • In some civil law countries, a party is entitled to require performance. • In the United States, specific performance is granted if the goods are unique and cannot be obtained elsewhere. Pop quiz 1.…

    • 1790 Words
    • 11 Pages
    Good Essays
  • Good Essays

    In the realm of contract law there are many ways of addressing breach of contract. The purpose of this paper is to analyze four separate scenarios and decide if the remedy of specific performance would be applicable to any of them. Specific performance is, “An extraordinary equitable remedy that compels a party to execute a contract according to the precise terms agreed upon or to execute it substantially so that, under the circumstances, justice will be done between the parties.” (retrieved September 7, 2013, from http://legal-dictionary.thefreedictionary.com/Specific+performance) Or, to put it succinctly, the court will order the contract to be fulfilled as written, with no damages…

    • 918 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Colossal Casino Case

    • 480 Words
    • 2 Pages

    Due to the nature of this case, it is important to understand the methodology of this analysis and how each aspect of a business legal environment applies. A lay person may view a promise as insignificant. However, a promise is a declaration by a person or promisor to perform or forbear from performing a specific act(s). The recipient of the promise or the “promise” has the rights to expect that the promise is performed. Under contract law, which is a component of civil law and based on legal principles that govern the exchange of goods and services between individual and businesses. It legally enforces promises as they are formed and…

    • 480 Words
    • 2 Pages
    Good Essays
  • Good Essays

    A. Legal Sufficiency 1. Adequacy 2. Unilateral Contracts 3. Bilateral Contracts 4. Illusory Promises a. Output and Requirement Contracts b. Exclusive Dealing Contracts c. Conditional Promises 5. Pre-existing Obligation a. Modification of a Pre-existing Contract b. Substituted Contracts c. Settlement of a Undisputed Debt d. Settlement of an Disputed Debt B. Bargained-For-Exchange 1. Past Consideration 2. Third Parties C. Contracts without Consideration 1. Promises to Perform Prior Unenforceable Obligations a. Promise to Pay Debt Barred by the Statute of Limitations b. Promise to Pay Debt Discharged in Bankruptcy c. Voidable Promises d. Moral Obligation 2. Promissory Estoppel 3. Contracts under Seal 4. Promises Made Enforceable by Statute a. Contract Modifications b. Renunciations c. Firm Offers…

    • 1728 Words
    • 7 Pages
    Good Essays
  • Satisfactory Essays

    Seah, W. ‘Unfulfilled Promissory Contractual Terms and Section 52 of the Australian Trade Practices Act’ (2000) 7(3) Murdoch University Electronic Journal of Law…

    • 518 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Detrimental Reliance

    • 2785 Words
    • 12 Pages

    Section 90 of the Restatement (Second) of the Law of Contracts reads, “Promise Reasonably Inducing Action or Forbearance: A promise which the promisor should reasonably expect to induce action or forbearance on the part of the promisee or a third person and which does induce such action or forbearance is binding if injustice can be avoided only by enforcement of the promise. The remedy granted for breach may be limited as justice requires. So, in other words, someone (the "promisor") made a representation of fact which could reasonably expect the other party to rely upon, that is, one party made a promise and the other person (the "promisee") did in fact rely upon the representation or promise. Now, the promisee suffers a detriment or injury as a result of that reliance.…

    • 2785 Words
    • 12 Pages
    Powerful Essays
  • Better Essays

    It is common in construction contracts to find determination clauses allowing either side to bring their contractual obligations to an end should an event specified occur due to the actions or inactions of the other. It would seem that common law determination and determination under a clause of contract are alternatives. There are differences between the processes. First, whereas common law determination depends upon repudiatory conduct or a fundamental breach, the grounds of determination specified by the contract need not exhibit these features, although frequently such will be present. Second, the remedies for common law determination are provided by law, whereas with a contractual determination the clause itself must expressly deal with the issue of remedies. Third, at common law in the face of repudiatory conduct or fundamental breach the innocent party need only indicate to the other that he accepts the breach and considers the contract discharged. Under a contractual determination clause the procedure specified must be carefully followed, failure to so may prevent a successful determination.…

    • 4500 Words
    • 18 Pages
    Better Essays