Introduction

Contract

An agreement having a lawful object entered into voluntarily by two or more parties, each of whom intends to create one or more legal obligations between them. The elements of a contract are:

Offer
Acceptance Competent persons Consideration Mutuality of obligation.

 Warranty

An agreement with reference to goods which are the subject of a

contract of sale, but collateral to the main purpose of contract, the breach of which gives rise to a claim for damages but not a right to reject the goods and treat the contract as repudiated.

Damages
An award, typically of money, to be paid to a person as compensation for

loss or injury. The rules for damages can and frequently do vary based on the type of claim which is presented and the jurisdiction.
Damages can be classified into : - General Damages - Special Damages - Nominal Damages - Substantial Damages - Exemplary Damages

Repudiation
Act, intention, or threat of disowning or rejection of an agreement

already accepted or agreed to. Repudiation amounts to a breach of contract where the refusal to perform is clear or patent, and where it

goes to the heart of the contract

ISSUE

I want to bake two hundred cake at a time.. But!!! Where I can buy it??

Hey jamal.. U can buy it from me.. It can reach a temperature of at least 2,000F. And Im selling it to you..

Hurm It sound great.. Should I buy it? I think it a good product.

OK then Halim.. I will buy it from u.. Thank you for selling me a good product..

I try to bake the cake.. But the oven never reach the requisite temperature.

I am very angry and I will filed a suit against Halim and claiming for Repudiation of the contract and Damages. I am sure I will win the case!!!!!

FACT OF THE ISSUE

Jamal bought the oven from Halim for

commercial purpose but the oven did not reach

the requisite temperature which is 2000-F.
Based on this issue, Jamal as the innocent party can

treat the issue as repudiated and he also can sue

Halim for the damages because Halim breach the

contract.

THE LAWS OF ISSUE

Malaysian Laws:
Section

40 Contracts Act 1950

Section
Section

74(3) Contracts Act 1950

76 Contracts Act 1950

Section 74(3) Contracts Act 1950

Compensation for failure to discharge obligation resembling those created by contract.
Any person injured by the failure to discharge it, is

entitled to receive the same compensation from the party in default.

Section 40 Contracts Act 1950

Effect of refusal of party to perform promise wholly.
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.

Section 76 Contracts Act 1950

Party rightfully rescinding contract entitled to compensation
A person who rightly rescinds a contract is entitled

to compensation for any damage which he has

sustained through the non-fulfillment of the contract.

APPLICATION OF LAW
JAMAL HAD EXPRESSLY MADE KNOWN BEFORE

PURCHASING THE OVEN THAT IT SHOULD REACH A TEMPERATURE OF AT LEAST 2000-F

Section 40 Contracts Act 1950 Jamal gives the condition in their contract. Halim should be known about the condition because Jamal made he know. Halim perform his promise and it cannot fulfill the condition that Jamal gives in their contract.

THE OVEN DID NOT REACH THE REQUISITE TEMPERATURE WHICH IS 2000-F
Section 74(3) Contracts Act 1950
Jamal

also have a right to receive compensation from Halim because of the damages of the oven and his business. Jamal is the person injured by Halims failure to fulfill the condition of the contract.

 Section 76 Contracts Act 1950

Jamal has the right to repudiate the contract and receive the compensation of his damages from Halim. Jamal can filed a suit against Halim claim about the repudiation of the contract and damages.

Conclusion
Jamal as the innocent party have a right to terminate a contract. Halim cannot fulfill his obligation in the contract. So, Jamal can repudiate the

contract and entitled to compensation.

Jamals damage specific as special damages. Special damages are damages of a

kind which the law will not presume in the innocent partys (plaintiffs) favour,

but which must be specifically pleaded and proved at the trial or arbitration
hearing.
In this case, Jamal loss in his money and he lost his profit because of that

situation.
As the conclusion of this case, Jamal can filed a suit against Halim claiming

about the repudiation of the contract and the damages that he sustained because of the breach of the contract.