Remedies in Contract When Money Is Not An Adequate Relief

REMEDIES IN
CONTRACT
WHEN MONEY IS NOT
AN ADEQUATE RELIEF
REMEDIES IN CONTRACT:
WHEN MONEY IS NOT AN ADEQUATE
RELIEF…..
 The object of damages is to give the plaintiff

compensation for the damage, the loss or injury he has
suffered.
RELIEF…..
 Lord Blackburn in Livingstone v The Rawyards Coal Co

(1880)5 App Cas 25 said that damages is ‘that sum of
money which will put the party who has been injured ,
or who has suffered, in the same position as he would
have been if he had not sustained the wrong for which
he is now getting his compensation or reparation’
WHEN MONEY IS NOT AN ADEQUATE RELIEF…..
 However there are instances when damages is an

inadequate relief or the injured party may want to insist
on the performance of the contract.
RELIEF…..
In such circumstances, the injured party may sue for

specific performance and apply for a court order to direct
a defendant to fulfil his obligations and perform the terms
of the contract as agreed.
RELIEF…..
 Specific performance is an equitable relief awarded

upon the discretion of the court requiring a party to a
contract to fulfil his or her obligations and perform the
terms of the contract as agreed
Specific performance can be regarded as a remedy that

protects the plaintiff’s expectation interest. However, a
party cannot ask for it as of right. It is certainly a
discretionary remedy. A party cannot obtain an order for
specific performance if he himself breaches his obligation
and is not ready to perform the contract. This is in line
with the maxim ‘he who comes to equity must come with
clean hands’
 Read case: Leelavathi a/p K Govindasamy v. Sivan a/l Subramaniam &

Anor[2015]3 MLJ 187
RELIEF….
Section 11 of the Specific Relief Act 1950 provides for

contracts which may be specifically enforced. However,
once the contract falls within Section 11, it does not mean
that specific performance will be granted because it still
depends on the discretion of the courts – Section 21 of the
Specific Relief Act 1950.
See Section 11 (1) (a)- (d)

Read Cases:
Gan Realty Bhd & Ors v. Nicholas & Ors [1969]2MLJ110
Sunrise & Co Pte Ltd v. Marco Shoe Sdn Bhd[1997]1CLJ529
Lim Sin Oo & Ors v. Cheah Tjeng Siong[1989]2MLJ44
See Section 11 (2)

Read Case ;
Reignmont Estate Sdn Bhd v. Jaya Ikatan Plantations Sdn
Bhd [2013] 9MLJ1
Section 18 Power to award compensation in certain cases.
Read Section 18 (1)
As the compensation is expressed to be in addition to, or in substitution for its

performance, it has been held that for the provision to apply, the plaintiff must
have sought specific performance in the first place…. See relevant case : Lee
Hoy & Anor v. Chen Chi[1971]1 MLJ 76 FC
Read cases: Ho Ah Kim & Ors v. Paya Trubong Estate

Quah Ban Poh v Dragan Garden Pte Ltd
RELIEF…..
 Section 18 (2)
Read cases: Baharuddin bin Ali & Anor v. Suharta Development Sdn Bhd [2003] 3 AMR 89
Ho Ah Kim & Ors v. Paya Trubong Estate[1987] 1 MLJ143
 Both cases involved with contracts for sale and purchase of land. In the first case, the land in
question had already been transferred to a third party, while the second case, the land had
been acquired by the government. In both cases, the High Court awarded damages in lieu of
specific damages.
 See Section 18(3) (4) & (5)
 Section 20 Contracts Not Specifically Enforced.
 A main principle of specific relief is that specific performance will not be

granted if damages is an adequate remedy
 Section 20 (1) (a)-(h)
 Section 21 Discretion of the court
 Section 21(1) makes it clear that the jurisdiction to decree a specific

performance is discretionary and the court is not bound to grant specific
performance merely because it is lawful to do so. It is also provided that the
discretion of the court is not arbitrary but is sound and reasonable, being
guided by judicial principles and capable of correction by a court of appeal.
 Section 21(2) set out the circumstances where the court may properly exercise
its discretion not to decree an order of specific performance.
 Section 21 (2) (a) – Saad Marwi v ChanHwan Hua & Anor
 Section 21(2) (b) – Sekemas Sdn Bhd v Lian Seng Co SdnBhd
 Section 21(3)- Mawar Awal (M) Sdn Bhd v.Kepong Management Sdn Bhd &
Anor
Relevant non-statutory consideration when exercising discretion
Equitable Maxims
He who comes with equity, must come with cleans hands
See case :Eastern Properties Sdn Bhd v. Hampstead Corporation (2007) 6 CLJ 538
Delay defeats equity
See case :Murad bin Hussain, Pentadbir Harta Pusaka Hussain@Md Hussain bin
Taib v Som bte Awang Kechik & Ors [1999]MLJU 723

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REMEDIES IN

 The object of damages is to give the plaintiff

 Lord Blackburn in Livingstone v The Rawyards Coal Co

 However there are instances when damages is an

In such circumstances, the injured party may sue for

 Specific performance is an equitable relief awarded

Specific performance can be regarded as a remedy that

 Read case: Leelavathi a/p K Govindasamy v. Sivan a/l Subramaniam &

Section 11 of the Specific Relief Act 1950 provides for

See Section 11 (1) (a)- (d)

See Section 11 (2)

Section 18 Power to award compensation in certain cases.

Read Section 18 (1)

As the compensation is expressed to be in addition to, or in substitution for its

Read cases: Ho Ah Kim & Ors v. Paya Trubong Estate

 Section 20 Contracts Not Specifically Enforced.

 A main principle of specific relief is that specific performance will not be

 Section 21 Discretion of the court

 Section 21(1) makes it clear that the jurisdiction to decree a specific

Relevant non-statutory consideration when exercising discretion

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