Chapter Discharge of Contract and Remedies

Question 1 A valid contract can be discharged in several ways. Explain the ways.

Question 2 Identify TWO (2) situations where a contract may be frustrated.

Question 3 On 21 September 2011, Arnold bought a large and draughty house, which had a greenhouse in the garden. He engaged Greenlite Sdn Bhd to fit double glazing to each of the 60 windows in the house, at a price of RM500 per window. The total price of RM300,000 was to be payable on completion of the contract. He also engaged Tom a local glazier, to fit new glass, 5mm thick, to the greenhouse, at a price of RM3,000, again payable on completion of the work. On 30 October 2011, Greenlite Sdn Bhd informed Arnold that its work had been completed, but, upon inspecting it later the same day, Arnold discovered that one of the windows had not been double glazed at all, and that 30 of them still let in draughts. At the same time, Arnold noticed that Tom had completed work on the greenhouse, but found, on inspecting some spare panes of glass, that they were only 4mm thick. Greenlite Sdn Bhd, while agreeing that further work needs to be done, is insisting on a payment of RM14,500 in relation to the 29 windows that are satisfactory before doing any further work. Arnold is insisting that all of the work must be completed in accordance with the contract before he makes any payment. Advise Arnold as to his rights under his contracts with Greenlite Sdn Bhd and Tom.