BBBL2023 Commercial Law Tutorial 5

TUNKU ABDUL RAHMAN UNIVERSITY OF MANAGEMENT AND TECHNOLOGY

BBBL2023 COMMERCIAL LAW

Law of Contract: Terms, Discharge and Remedies of Contract

TUTORIAL 5 WEEK 6

1. Differentiate between a ‘condition’ and a ‘warranty’ in a contract.

2. Briefly explain how a contract can be discharged.

3. Raja is a supplier for baking ingredients. Hanif ordered 50 bags of flour from Raja since
Raja was expecting delivery of 1,000 bags of flour from Johor. However, the delivery was
cancelled by the courier the day before the contract between Hanif and Raja was made.
This is because the courier’s employees were on a strike and both Raja and Hanif were
ignorant of this fact. (April/May 2021 Exam)

4. Following Question 3 above, would your answer be different if the delivery was cancelled
the day after Raja and Hanif made the contract to purchase 50 bags of flour and both were
unaware of this fact? (April/May 2021 Exam)

5. In December 2018, Fancy, a lawyer working at a legal firm, Lovelace & Hastings signed
a retainer (lawyer-client contract for legal services) with Lola, represent Lola who has been
charged with theft. In 2019, Fancy failed to renew her practising certificate, therefore she
was unable to appear in court for the trial of Lola’s case. Lola was frustrated and threatened
to sue Fancy for breach of contract. However, Fancy claimed that the contract was void
due to discharge by frustration since the contract has become impossible to be performed
without a valid practising certificate. Advise both parties as to whether the contract is
discharged by breach or frustration.

6. Discuss the difference between prohibitory and mandatory injunction. Support your
answer with case law.

7. Sally contracted to supply a propeller, without delay, to Gary’s factory since one of the
machine’s propellers in Gary’s factory was broken. Sally unreasonably delayed the
delivery of the propeller to Gary’s factory. Gary sued Sally for breach of contract and
sought damages from Sally for the following losses:

(a) Loss of profit approximately RM2 million due to the delay.

(b) Loss of a profitable contract with the Government.

Advise Gary on whether he can claim damages from Sally for the losses above.

STRICTLY FOR TARUC STUDENTS ONLY 1