Q1a. Using Malaysia Law to answer questions in IRAC approach (issue, rule, application, conclusion).

P/s: use the cases/ acts of Frustration of contract (Section 57 CA 1950) and Force majeure, material adverse change, change in law to explain.

Malaysian Government imposes lockdown in the country and all businesses, except the essential services, were ordered to shut down.

Sharon rents a premise to run a business that provides pets grooming and services in shopping mall. All the shop lots are owned by the mall and are rented out to retailers. The mall was closed due to the MCO until 20 May 2020 and, thereafter, when the MCO restrictions were relaxed the mall was allowed to reopen.

During the MCO, Sharon was only able to do visit home service which contributed to less than 30% of his normal earnings. Even during the Conditional MCO(relaxed), the business was considered bad as many people avoid visiting to the malls. Although the mall was completely closed during the MCO, the mall, however, insisted that all the retailers including Sharon are required to pay their monthly rentals as per the terms and conditions of their respective Tenancy Agreements. The mall did offer a 10% discount but only for the two months of the MCO period but not CMCO period.

Sharon comes to you for legal advice, as he strongly feels it is unfair and unjust for the mall to demand rental during the MCO when the mall was completely closed. She argues that the mall was also under a legal obligation to provide the rented premises which the mall clearly failed or was unable to do so. Her point is that if the mall was unable to provide premises (i.e. perform their part of the agreement), why should then he be obliged to pay for the premises (i.e. perform his part of the agreement).

Advice Sharon on his legal rights with reference to the relevant laws and judicial decisions.

Q1b. How material adverse change, change in law and force majeure clause different? Is that nature of agreement? When to use them? Is that possible to include these rules in this scenario?