UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY BUSINESS AND FINANCE

JANUARY 2020 TRIMESTER

UBML1053 BUSINESS LAW

TUTORIAL QUESTIONS
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TUTORIAL 8: Discharge of a contract & Remedies for a breach of contract

1. A promisor must perform his obligations within the time agreed for performance.
Explain the remedies available to the promisee in the event the promisor fails to
perform the contract within the time specified for its performance.

2. Armada Knight Construction (ARC) entered into a contract with Perak Rubber
Plantations (PRP) to build 50 houses for the workers of PRP at a total sum of RM
1million within twenty-four months from the date of the contract. It was further agreed
that in the event ARC fails to complete and deliver the houses to PRP within twenty-
four months, ARC shall pay compensation in the form of liquidated damages for any
delay at the rate of ten percent (10%) per annum of the agreed price. Owing to the
shortage of building materials, cement and skilled labour, ARC took forty-eight months
to complete and deliver the houses to PRP. PRP has claimed compensation of RM
200,000 from ARC. ARC has denied liability and claimed that the contract was
frustrated on the ground that the delay in completing the houses was due to events
outside their control.

Advise Perak Rubber Plantations.

3. Explain the remedies available for breach of contract.