“remedy” Means A Right That Can Be Claimed By A

“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) Actual Actualloss loss cannot cannot be be made made certain certain

s.11(1)(a) s.11(1)(a) Act Act to tobe be done done isisaa trust trust WHEN WHENSP SP CAN CANBE BE GRANTED GRANTED s.11(1)(d) s.11(1)(d) Money Money compensation compensation cannot cannot be be obtained obtained

s.11(2) s.11(2) Cnt Cnt involve involve immovable immovable property property

s.11(1)(c) s.11(1)(c) Money Moneyisisnot not suitable suitable compensatio compensatio nn

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 RY

AT ANY PERIOD OF THE SUIT. TO PRESEVE STATUS QUO Section 51 (1)

PERMANENT / PERPETUAL

GRANTED AFTER FULL TRIAL. PROHIBIT 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