More than 300 words for each question. For example, a contract with a travel agency to travel
Question:
More than 300 words for each question.
For example, a contract with a travel agency to travel to Taiwan may be argued to have been frustrated by the temporary entry ban imposed by Taiwan provided that the agreed travelling time falls within the ban period. Similarly, your long-awaited cruise trip with Dream Cruise would be frustrated as well.
However, to argue that a 2-year tenancy agreement is frustrated due to Covid-19 and MCO would be an uphill battle as the tenancy agreement is still capable of performance despite Covid-19 and MCO. Unless, MCO lasts for 2 years which basically long enough to render the whole tenancy agreement incapable of performance.
It must be borne in mind that the relief or remedy of frustration is discharge. Therefore the event must be radical and severe enough to render the agreement impossible to perform. It cannot be a temporary event that merely affects the contract. It must be fundamental, going to the root of the contract.
Hence, the million-dollar preliminary question is whether you can still perform your obligation despite the effects arising from Covid-19? Bearing in mind that facing difficulties in performing are not sufficient.
As the threshold to rely on frustration is high, it is pertinent to include express and clear terms to include and cater for situations such as pandemic Covid-19 that affects the contract but insufficient to frustrate the whole agreement, for parties to make necessary adjustment or arrangement such as reduction of price or rental or temporary waiver of payment. This however, may lead to uncertainties and more arguments.
Article is available at https://www.businesstoday.com.my/2022/01/11/can-non-performance-ofthe-contractual-obligations-due-to-the-covid-19-pandemic-be-excused/
Answer the questions below based on the above article.
a) Explain on the frustration of the contract for the non-performance due to Covid 19
Pandemic.
b) Discuss TWO (2) remedies available to the contracting parties after the frustration of the contract?
c) Based on the above article, provide TWO (2) suggestion to solve the issue of non- performance of the contract due to Covid 19.
Expert Answer:
Frustration of Contracts Due to Covid19 Pandemic a Frustration of the Contract for NonPerformance due to Covid19 Pandemic The article explains that th... View the full answer
