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“REMEDY”

means a right that can be claimed by a


party to a contract that experience
losses coz of the other party to the
contract was in breach.

Types of remedies:-
1. RESCISSION OF CONTRACT
2. DAMAGES
3. QUANTUM MERUIT
4. SPECIFIC PERFORMANCE
5. INJUNCTION
RESCISSION OF
CONTRACT

• If a party breaches his promise, the party


not in breach has the right to rescind the
contract.
• Section 40
• Illustration (a)
• Section 65 and 66
• MURALIDHAR CHATTERJEE’s case
DAMAGES
DEFINITION
-The court’s estimated compensation in money
for detriment or injury sustained by the
plaintiff in contract/tort
Is granted to a party as compensation for
damage, loss or injury suffered due to a breach
of the contract.
• Section 76 – party not in default if
rescinds contract, also entitled to
compensation for damages sustained
because of non-fulfillment of the
contract
• Illustration (a) section 40
• Cases:
• YONG MOK HIN v UNITED MALAY
SUGAR INDUSTRIES
TYPES OF DAMAGES
• SECTION 74
• Common law rule : Hadley v. Baxendale
• the court decided that damages may only be
awarded in respect of loss which either:-

a. arises naturally-
• accord. to usual course of things for the breach.
Illustration (f) and (g)
• BEE CHUAN RUBBER SDN BHD v LOO SAM MOI
b) Special damages for any special losses
• Compensation where the party knew when
they made the contract, to be likely to result
from the breach of it must not too remote
• PF must prove that the Df knew at the time of
making the contract, the special lost is likely
to result from the breach
• PF also must prove that the DF could foresee
the lost at the time of making contract
Tham Cheow Toh v. Associated Metal Smelters Ltd
Held: a failure to sent a smelter that could burnt up to
f’2600 is a breach of contract. Dft can expect the
losses that might incurred from that breach.

Such compensation is not to be given for any remote and


indirect loss or damages sustained as a result of the
breach.

c) Liquidated damages
section 75
The amount of damages to be paid in case of
breach of the contract has been stated in the
contract.
• Maximum limit of compensation
• Cannot claim more than fixed
amount even though losses is
greater
Damages of unspecific amount are
divided into 3:

1. Substantial –
a reward given is to put plaintiff in a place that he should if
defendant perform the contractual obligation.

2. Nominal – a small reward to plaintiff after he shows that


there is a breach of contract, even though there is no real
losses incurred.

3. Exemplary – a reward given is far higher than the losses


incurred.
SPECIFIC PERFORMANCE
DEFINITION
It is the decree or the court directing that
the contract shall be performed
specifically, that, according to it’s term.

• Given at the court’s discretion


• Section 21 Specific Relief Act (“SRA”)
s.11(1)(b)
s.11(1)(b)
s.11(1)(a)
s.11(1)(a) Actual
Actualloss
loss
Act
Act totobebe cannot
cannot be
be
done
done made
made
isisaa trust
trust certain
certain

WHEN
WHENSPSP
CAN s.11(1)(c)
s.11(1)(c)
CANBE
BE Money
GRANTED
GRANTED Moneyisisnot not
suitable
suitable
compensatio
compensatio
s.11(1)(d)
s.11(1)(d) nn
Money
Money
compensation s.11(2)
s.11(2)
compensation
cannot Cnt
Cnt involve
involve
cannot be
be
obtained immovable
immovable
obtained
property
property
When SP cannot be
granted – s.20
• Breach can be compensated by
money
• Contract too many details
• Contract of employment
• Contract which court must supervise
• Terms of contract are not certain
• Contract is revocable in nature
• Contract made by trustee which
exceed power / breach of trust
• Contract by those representing
corporation exceeding its power
• Where performance of contract more
than 3 years
• When subject matter of contract no
longer exist
Ct discreations not to
enforce SP
• Section 21(2)
• A) Contract is made are such as to
give the PF an unfair advantage over
the DF
• B) contrcat involved hardship on the
DF
INJUNCTION
DEFINITION
A decree by the court ordering a
person not to do a certain act. It is
an equitable remedy given at the
discretion of the court.

• In the Specific Relief Act 1950, the


injunction is a remedy classed in
Part III as the “Preventive Relief”.
TYPES OF INJUNCTION

TEMPORARY /
INTERLOCUTO PERMANENT /
RY PERPETUAL

AT ANY PERIOD GRANTED


OF THE SUIT. AFTER
TO PRESEVE FULL TRIAL.
STATUS QUO PROHIBIT
Section 51 (1) PERMANENTLY
Section 51 (2)
WHEN INJUNCTION CANNOT
BE GRANTED
• s.54(f) = if SP cannot be granted, injunction also
cannot be granted
• EXCEPTION !!!
• s.55 – Where there is an affirmative & negative
agreement e.g. contract of employment
• LUMLEY v WAGNER
• PERTAMA CABARET NITE CLUB v ROMAN
TAM
• BROOME RUBBER PLANTATIONS V WHITNEY
QUANTUM MERUIT

• Payment for work done / services


rendered
• Where a party refuses to perform
contract
• PLANCHE v COLBURN
• Where work has been performed
under a void contract
• CRAVEN-ELLIS v CANONS LTD

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