As a business owner or individual, entering into a contract is a common occurrence. Unfortunately, sometimes the other party fails to uphold their end of the agreement, resulting in a breach of contract. In Malaysia, there are remedies available to those who find themselves in this situation.
1. Specific Performance
Specific performance is a remedy that requires the breaching party to fulfill their obligations as stated in the contract. This is often used in cases where the damages caused by the breach cannot be adequately compensated with monetary compensation. For example, if a contractor breaches a contract to build a new house, the owner may seek specific performance to ensure the contractor completes the construction as agreed upon.
Damages are a common remedy for breach of contract in Malaysia. This involves seeking a monetary compensation for the losses incurred as a result of the breach. The amount of damages awarded will depend on the extent of the breach and the losses suffered. There are two types of damages that can be awarded – general damages and special damages.
General damages are awarded to compensate for the loss suffered, such as the loss of profits or opportunities. Special damages, on the other hand, are awarded for specific losses that can be quantified, such as the cost to repair damage caused by the breach.
Rescission is a remedy that allows the contract to be cancelled, effectively putting both parties back in the position they were in before the contract was made. This remedy is typically used when the breach is so severe that continuation of the contract is not feasible. For example, if a supplier breaches a contract to deliver goods, the buyer may seek rescission of the contract and look for another supplier.
Termination is another remedy for breach of contract in Malaysia. This involves ending the contract and releasing both parties from their obligations. This remedy is often used when the breach is serious and ongoing, and the parties can no longer work together. For example, if an employee breaches their contract by disclosing confidential information, the employer may terminate the contract.
In conclusion, breach of contract can be frustrating and costly. However, there are remedies available in Malaysia to help those who have suffered from a breach. Whether it`s seeking specific performance, damages, rescission or termination, it`s important to seek legal advice to determine the best course of action. By doing so, you can protect your rights and interests and ensure that justice is served.