TUTORIAL 6 (WEEK 7): DISCHARGE BY PERFORMANCE & BREACH

Question 1

Discuss the general rule in contractual relations that performance must be exact and precise and in
accordance with what the parties have agreed under the Common Law and Contracts Act 1950 (Act
136).

Question 2

By an agreement dated 1st January 1980, Raymond, a contractor agreed with the Matahari University
to construct two hostel blocks, one for the boys and another for the girls, a common room and a
restaurant, one library building, one swimming pool and a squash court. The project was to be
completed on 15th June 2000. The total cost of the construction work was RM 10m. Raymond was
paid an advance of RM 5m at the commencement of the work and the agreement provided that the
balance of the amount was to be paid on the completion of the entire work on 15 th June 2002.
Sometimes in January 2001, Raymond abandoned the work. But by this time most of the buildings
under the project had been built except the swimming pool and the squash court. Raymond claimed
from Matahari University the actual cost of the construction work. The Matahari University denied
that Raymond had completed the works in question and counter-claimed RM 3m as expenses incurred
in completing the work, which remained undone, or in the alternative damages for the breach of the
contract.

Discuss and decide the rights of the parties under these circumstances

Question 3

Explain the legal issues surrounding the clause “time of the essence of the contracts”. Support your
answer with decided cases.