TERMINATION OF CONTRACT

What is termination?

• The cancellation of an outsourcing agreement

• An argument or disagreement between two people, groups or countries discussion about a subject where there is disagreement

• An issue that is the result of a license not meeting a requirement or standard where the cause was reasonably within the license's ability to foresee and correct, and that should have been prevented

• Method for assigning responsibility to an organization or an individual for providing design and constructionservices.

What is the type of contract breaches?

(choose 2 answer)

• Insolvency

• Minor contract material

• Bankruptcy

• Major contract material

What are the causes of contract termination?

( choose 3 answer)

• Breach of contract

• Convenience

• Workers failed to make payment

• Insolvency/bankruptcy

"Situation where nether party has defaulted on the contract but other circumstances have prevented the contract from being performed as originally intended."

From the statement above, which definition does it refers to?

• Force majeure

• Insolvency

• Breach of contract

• Frustration

Once the contract terminated by Employer, all these actions need to be taken by Contractor... EXCEPT

• Return the all documents such as drawings to Civil&Structural engineer

• Vacate and remove the belongings from the site

• Sell the remaining belongings to the employer

• Leave the site immediately

PAM 2006 Contract is a standard contract use for building works in Malaysia.

What is the rights and duties of the Employer and Contractor in Clause 25.4 (d) ?

(choose 2 answer)

• The Employer is entitled by himself or to employ others to complete the outstanding works

• The Contractor is not entitled to any monies until after completion of the outstanding works by the Employer

• The Contractor must vacate the site and remove all equipment and personnel (including his sub-contractor)

• The Employer to claim expenses, loss, damages suffered

What is the function of interim certificate?

• Provide mechanism for the client to make payment to the contractor before the work are complete

• Ensure the employer inform of death or his ceasing within 30 days

• Suspend the whole uncompleted work for a continuous period pf time

What are the reasons termination of contract by the Contractor?

( choose 2 answer)

• Fail to remove defective works

• Employers insolvency

• Failure to appoint S.O upon his death

"One party intentionally fails to meet obligations and the non-breaching party decides to terminate the agreement."

What is the solution for the following statement?

(choose 2 answer)

• Fair work rules and policies should not be established

• The contractor should attempt to reach an agreement on the terms and conditions with the client

• A thorough evaluation of all the risk and costs associated with the termination should be conducted

• The parties should keep documentation showing that they fulfilled their contract duties

What is the purpose of awarding contractual damages?

• To put the non-breaching party into the position it would have been in had the contract been performed as agreed

• To give breaching party a luxurious life

• To give non-breaching party an entitled to recover as loss of profit any profit made from the breach by the contract-breaker

• To avoid the breaching party from getting court charges