Question: There are four ways which a contract can come to an end/discharged, that is by performance, agreement, breach and frustration. That means the parties can

There are four ways which a contract can come to an end/discharged, that is by performance, agreement, breach and frustration. That means the parties can only be released from their mutual obligations under the contract by any one of the above methods.

Discuss which of the fours ways the following contracts are discharged. You may substantiate your discussion with relevant case judgments, if any:-

a) PS Development (PSD) has an ongoing contract with a Rafique Construction Sdn. Bhd. (RCSB) to build a 4 storey bungalow in the town of Tanjung Tokong, Penang. When the project was 55% completed, Penang was inundated with a terrible flood. The whole construction site was submerged in 3.5m high of flood water and the completed portion of the bungalow was destroyed during the flood.

b) Rafique Construction Sdn. Bhd. (RCSB) contracted with Faber Que Precast Sdn Bhd (FQPSB) to manufacture precast concrete piles for its construction project and to be delivered in 12 weeks. FQPSB started work in prefabrication. 6 weeks after the contract was signed, RCSB informed FQPSB that it wants to cancel the order.

c) Rafique Construction Sdn. Bhd. (RCSB) had an ongoing contract to build a recreational park for Oasis Ventures (OV). Midway through the contract, RCSB has other obligations and proposed to OV to have a novation contract where all the rights and obligations were novated to BCC Sdn. Bhd. OV agreed to the novation.

d) Rafique Construction Sdn. Bhd. (RCSB)s offer to build a factory for Hawker Wing for RM5mil was contracted on 1 February 2022. The date of commencement of the factory works was on 22 February 2022. But on 17 February 2022, RCSB realized that he had underpriced the factory works by a big margin and will incur severe loss if he were to proceed with the contract. On 21 February 2022, RCSB informed Hawker Wing in writing his decision not to proceed with the contract.

e) Supplier TSIs tender had been accepted to supply tones of rebar and wire mesh to Rafique Construction Sdn. Bhd. (RCSB) within the last 14 days of February 2022. TSI delivered the supply at 9.30pm on Saturday, 28th 2022. RCSB refused to accept the delivery because of the lateness of the hour.

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