Page 70 - PRINCIPLE OF LAW- FINAL (eISBN) pdf

Politeknik Kota Bharu

✓ Two (2) condition for discharge by performance:

i. The contract comes to an end when both parties perform

their contractual obligations. Performance must

substantially correspond with what the parties agreed

allowing for minor or trivial defaults.

ii. When any parties fail to perform as per contract

▪ Clause 38(1) Contract Act, 1950 – if there is slightest

deviation from the terms of contract, the other party

entitled to say the contract has not been performed and

entitled to sue for damages for breach and in certain

cases to elect to treat himself as discharge.

▪ Clause 40 - When a party to a contract has refused to

perform, or disabled himself from performing, his

promise in its entirety, the promise may put an end to

the contract, unless he has signified, by words or

conduct, his acquiescence in its continuance

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