Tutorial 5 (Week 6)

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TUTORIAL 5 (WEEK 6): 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 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

Cutter v Powell (1795) 6 TR 320


Bolton v Mahadeva [1972] 1 WLR 1009
Tong Aik (Far East) Ltd v Eastern Minerals & Trading (1959) Ltd [1963] MLJ 322
H Dakin & Co Ltd v Lee [1916] 1 KB 566.
Built ding & Estates Ltd v Connor [1958] 1 MLJ 173
KP Kunchi Roman v Goh Bros Sdn Bhd [1978] 1 MLJ 89
Sumpter v Hedges [1898] 1 QB 673
Haji Hasnan v Tan Ah Kian [19631] MLJ 175
Pavey & Matthews Pty Ltd v Paul [1987] 162 CLR
Kejuruteraan Elektrik Usahamaju Sdn Bhd v Zilatmas (M) Sdn Bhd. [2000] 4 AMR 4706.
Hasbullah Chan & Associates Architect v Rahika Development Sdn Bhd [2000] 4 AMR 4706
Mott Macdonald (Malaysia) Sdn Bhd v Hock Der Realty Sdn
Yee Hoong Loong Corp Sdn Bhd v Kwong Fook Seng Co [1993] 1 MLJ 163
Smith Construction Co Ltd v Phit Kirivatna [1955] MLJ 8
Penang Development Corp v Khaw Chin Boo & Anor, 1[1993] 2 MU 161; [1993] 3 CLJ 167
Nyap Kui Fah v Len On Contractor [1978]1 MLJ 208
Hassan v Ismail [1970] 1 MLJ 210
Tan Ah Kian v Haji Hasnan [1962] MLJ 400
Mensa Mercantile (Far East) Pte Ltd v Ekobina (M) Sdn Bhd [1989] 2 MLJ 170.
Tan Ah Kian v Haji Hasnan [1962] MLJ 400
Mensa Mercantile (Far East) Pte Ltd v Ekobina (M) Sdn Bhd [1989] 2 MLJ 170.
Associated Pan Malaysia Cement Sdn Bhd v Syarikat Teknikal & Kejuruteraan Sdn Bhd [1990] 3
MLJ287
Mohd Said Hasan Kamouna v Ferrari (M) Sdn Bhd [1998]3MLJ
Chye Fook & Anor v Teh Teng Seng Realty Sdn Bhd [1989] 1 MLJ 308
Eng Mee Yong & Ors v V Letchumana [197912 MLJ 212, PC (Appeal from Malaysia).
Ganam d/o -Rajamany v Somoo slo Sinniah [1984] 2 MLJ 290
Sakinas Sdn Bhd v Siew Yik Hau & Anor [2002] 5 MLJ 497
Yeow Kim Pong Realty Ltd v Ng Kim Pong [1962] MLJ 118, PC (Appeal from Malaysia).
Sharikat Eastern Plastics Industry v Sharikat Lam Seng Trading [1972] 1 MLJ 21.
Sim Chio Huat v Wong Ted Fui [1983] 1 MLJ 151
Cheah Khoon Tee v. Crimson Development Sdn Bhd [1999] 8 CLJ 79.
Quah Ban Poh v Dragon Garden Pte Ltd [1985] 2 MLJ 159
Wong Kup Sing v Jeram Rubber Estate Ltd [1969]1MLJ245
Kilmer v British Columbia Orchard Lands Ltd [1913] AC 319)
Siah Kwee Mow v Kulim Rubber Plantation [1979]2MLJ 190
Barclay v Messenger (1874) 30 LJ 351
Lock v Bell [1931] Ch 35; Howe v Smith (1884) 27Ch D 89,
White v Ross [1960] NZLR 247
KL Finance Bhd v Yap Poh Khian Tea Sik Eng & Anor (Interveners) [1992]1 MLJ 472
Wang Kup Sing v Jeram Rubber Estates Ltd [1969] 1 MLJ

Discharge by Breach

Hochster v Dc la Tour. 1 (1853) 2-El & BI 678; 118 ER 922


Lovelock v Franklyn (1846) 8 QBD 371; 115 ER 916
Frost v Knight (1872) LR 7 Ex 111
Universal Cargo Carriers Corp v Citati55 [1957] 2 All ER 70.
Freeth and Another v Burr (1874) LR 9 CP 208.
The Mersey Steel and Iron Co Ltd v Naylor, Benzon & Co (1884) 9 App Cas 434, HL
Hongkong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd [1962]2QB26.
Choo Yin Loo v SK Visuvalingam Pillay (1930) 7 FMSLR 135.
Sooltan Chund v Schiller (1878) ILR 4 Cal 252
Hwa Chea Lin & Anor v Malim Jaya (Melaka) Sdn Bhd [1996] 4 MLJ 544
Choo Yin Loo v Visuvalingam Pillay (1930) 7 FMSLR 135
Wong Poh Oi v Gertrude Guok & Anor [19661 2 MLJ 134
Rasiah Munusamy v Lim Tan & Sons Sdn Bhd [1985] 2 MLJ 291, SC.
Freeth v Burr (1874) LR 9 CP 208
Ching Yik Development Sdn Bhd v Setapak Heights Development Sdn Bhd [1997] 1 AMR 89, CA.
Kluang Wood Products Sdn. Bhd & Anor v Hong Leong Finance & Anor [1999] 1 MLJ 193, SC.
Ban Hong Joo Mines Ltd v Chen & Yap Ltd [969] 2 MLJ 83, FC

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