Page 71 - PRINCIPLE OF LAW- FINAL (eISBN) pdf

Politeknik Kota Bharu

2.5.2 DISCHARGE BY AGREEMENT (CONSENT/ACCORD BETWEEN

PARTIES)

✓ The parties themselves can agree to end the contract, form a

new contract, or vary the original one.

✓ Section 63: novation, rescission (mansuh/batal), alteration.

✓ Section 64: remission (pemaafan/pelepasan).

2.5.3 DISCHARGE BY IMPOSSIBILITY (FRUSTRATION)

✓ A contract automatically comes to an end if it is discharged by

frustration that makes performance impossible.

✓ Clause 56: Effect of failure to perform at fixed time(time is

essential, time not essential, time other than agreed).

✓ Clause 57: An agreement to do an act impossible in itself is

void (afterwards becoming impossible or unlawful).

✓ Instances/condition of frustration:

i. Destruction of subject-matter of contract (that is no fault

of either party & not be a self-induced).

ii. Non-occurrence of particular event (an unforeseeable

event).

iii. Death or incapacity of one party where personal

performance is necessary.

iv. a change in the law making a previously legal contract

illegal.

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