Tutorial 5 (Week 6)
Tutorial 5 (Week 6)
Tutorial 5 (Week 6)
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 2002. 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 15th 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, which has been completed, less the
advance of RM 5m. 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
Guan Chit Tuan J in KP Kunci Raman v Goh Brothers Sdn Bhd [1978] 1 MLJ 89 stated;
“The rigour of the common law rule has been modified by the doctrine of substantial performance
that promisor who has substantially performed his side of the contract may sue on the contract for the
agreed sum although he remains liable in damages for his partial failure his contractual
obligations.”
Explain the above statement in relation to the law of performance of contracts. Support your answer
with decided cases.
Question 4
Explain the legal issues surrounding the clause “time of the essence of the contracts”. Support your
answer with decided cases.
Question 5
Write a commentary (include the summary of facts, legal issues and judgments) for the following
cases:
Discharge by Performance
Discharge by Breach