UNIVERSITI TUNKU ABDUL RAHMAN

JANUARY 2022 TRIMESTER

UKML1013/UBML1013 CORPORATE AND BUSINESS LAW

TUTORIAL 5: Discharge of a contract & Remedies for a breach of contract

1. A promisor must perform his obligations within the time agreed for performance.
Explain the remedies available to the promisee in the event the promisor fails to
perform the contract within the time specified for its performance.

2. Ban Lee Construction (BLC) entered into a contract with Selangor Rubber Plantations
(SRP) to build 50 houses for the workers of SRP at a total sum of RM 1million within
twenty-four months from the date of the contract. It was further agreed that in the event
BLC fails to complete and deliver the houses to SRP within twenty-four months, BLC
shall pay compensation in the form of liquidated damages for any delay at the rate of
ten percent (10%) per annum of the agreed price. Owing to the shortage of building
materials, cement and skilled labour, BLC took forty-eight months to complete and
deliver the houses to SRP. SRP has claimed compensation of RM 200,000 from BLC.
BLC has denied liability and claimed that the contract was frustrated on the ground that
the delay in completing the houses was due to events outside their control.

Advise Selangor Rubber Plantations.

3. Tey comes to you and narrates to you the following incident that had happened to him:

‘I am an antique collector. The other day I dropped by an antique shop. I found an

antique vase that I wanted to buy. The owner John agreed to sell the vase to me at a
very reasonable price. I told him that I would come back with the money the next day.
When I went back the following day with the money to pay for the vase, John refused
to let me have the vase. I am thinking of suing John. What remedy would you suggest
that would be most suitable for John’s breach of contract?’

Advise Tey.