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Joyce, a single mother, was elated as she found suitable premises to house the central kitchen of MalayaTrulyAsia, a fusion food outlet which she established
Joyce, a single mother, was elated as she found suitable premises to house the central kitchen of MalayaTrulyAsia, a fusion food outlet which she established with many years of hardship and diligence. A tenancy agreement was recently signed with the landlord for two years with an option to renew for another two years. Before her team could move into the central kitchen, the government announced that there will be a total lockdown of the country for a period of one month via a movement control order (NICO) to prevent the spread of a raging pandemic. Joyce is anxious, she knows her food business will be adversely affected by the lockdown. She pleaded with the landlord to terminate the said tenancy agreement but the landlord is adamant and insists that the strict letter of the agreement applies. Joyce comes to seek your advice whether she can be excused from performance of the tenancy agreement. You perused the tenancy agreement and found out that the document does not have a force majeure clause nor any clause to the effect to excuse or release the performance of the tenancy by reason of a MCO order. In not more than 1200 words, advise Joyce whether performance of the tenancy can be excused premised on frustration of contract with reference to the Contracts Act 1950 and case law, where relevant. (35 marks)
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