NUR SYAHIRA BINTI NORDIN
NUR SYUHADA BINTI HASHIM
OCTOBER 2007 (QUESTION 1)
ISSUES :
Whether Maira entitle the remedies against Tradewinds and Luscious spa?
Whether Maira can take legal action towards Tradewinds by using principle of exemption clauses?
Whether the contract between Maira and Luscious spa can be discharged?
PRINCIPLE
Damages are one of the remedies in the event of breach of contract. Damages are granted to a party as compensation for the damages, loss, injury suffered due to a breach of contract. The rules relating to damages are provided in section 74 to 74 in The Contract Act 1950 stated that ‘a person who rightly rescinds a contract is entitled to compensations for any damages which he has sustained through the non fulfillment of the contract. By virtue of section 74(1), the party suffers by the breach is entitled to receive from the party who has broken the contract whether ordinary or special damages. Damages may also classify as substantial damages, nominal damages and exemplary damages.
An exclusion clause is a clause in the contract or a term in notice which appears to exclude a liability or a legal duty which would otherwise arise. There are conditions to be fulfilled for the purpose of incorporating terms are notice of the terms must be given at or before the time of concluding the contract, terms must be contain or referred to a document and take reasonable steps to bring the terms to the attention of the other party.
Discharge of contracts is when a contract is discharged, it is actually terminated. The contracting parties are free from further obligations under the contracts. The contract must be discharged by anyone by performance of the contract, by consent of agreement between the parties, by impossibility or frustration or by breach of contract by anyone of the parties.
Based on the case, Vivian the travel agent of Tradewinds informed Maira that the packaged include both her airfare and hotel accommodation at 5 star...