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Doctrine of frustration and force majeure clause: its application on tenancy contract during the movement control order in Malaysia

The government of Malaysia has declared the Movement Control Order (MCO) for the whole nation in order to flatten the curve of COVID-19 infection. The MCO has, among others, caused parties in a contract to question the effect of the MCO on the contract. As the areas of law are wide, this paper a...

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Main Authors: Muhammad Asyraf Azni,, Suria Fadhillah Md Pauzi,, Ida Rosnita Ismail,
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2021
Online Access:http://journalarticle.ukm.my/16683/1/43762-151924-1-PB.pdf
http://journalarticle.ukm.my/16683/
https://ejournal.ukm.my/juum/issue/view/1378
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spelling my-ukm.journal.166832021-06-02T15:10:45Z http://journalarticle.ukm.my/16683/ Doctrine of frustration and force majeure clause: its application on tenancy contract during the movement control order in Malaysia Muhammad Asyraf Azni, Suria Fadhillah Md Pauzi, Ida Rosnita Ismail, The government of Malaysia has declared the Movement Control Order (MCO) for the whole nation in order to flatten the curve of COVID-19 infection. The MCO has, among others, caused parties in a contract to question the effect of the MCO on the contract. As the areas of law are wide, this paper aims to discuss the effect of MCO on a tenancy contract. The paper analysed the legal position of doctrine of frustration and force majeure clause in the context of tenancy contract in Malaysia. The analysis was done based on the law cases and legal provisions in Malaysia. Reference was also made to case law from the United Kingdom and Singapore as their law is in pari materia with Malaysian law and they are persuasive in nature. This paper found that the doctrine of frustration can be invoked if the performance of the obligation under the tenancy contract is prevented due to the MCO. However, the court will apply the doctrine of frustration in a very careful manner to respect the sanctity of the agreement. As for the force majeure clause, it can be successfully invoked if the scope of the clause covers the event in question, such as the MCO. In conclusion, whether a tenancy contract can be terminated due to the MCO, it will depend on the terms of each tenancy contract. Penerbit Universiti Kebangsaan Malaysia 2021 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/16683/1/43762-151924-1-PB.pdf Muhammad Asyraf Azni, and Suria Fadhillah Md Pauzi, and Ida Rosnita Ismail, (2021) Doctrine of frustration and force majeure clause: its application on tenancy contract during the movement control order in Malaysia. Jurnal Undang-Undang dan Masyarakat, 28 . pp. 11-17. ISSN 1394-7729 https://ejournal.ukm.my/juum/issue/view/1378
institution Universiti Kebangsaan Malaysia
building Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description The government of Malaysia has declared the Movement Control Order (MCO) for the whole nation in order to flatten the curve of COVID-19 infection. The MCO has, among others, caused parties in a contract to question the effect of the MCO on the contract. As the areas of law are wide, this paper aims to discuss the effect of MCO on a tenancy contract. The paper analysed the legal position of doctrine of frustration and force majeure clause in the context of tenancy contract in Malaysia. The analysis was done based on the law cases and legal provisions in Malaysia. Reference was also made to case law from the United Kingdom and Singapore as their law is in pari materia with Malaysian law and they are persuasive in nature. This paper found that the doctrine of frustration can be invoked if the performance of the obligation under the tenancy contract is prevented due to the MCO. However, the court will apply the doctrine of frustration in a very careful manner to respect the sanctity of the agreement. As for the force majeure clause, it can be successfully invoked if the scope of the clause covers the event in question, such as the MCO. In conclusion, whether a tenancy contract can be terminated due to the MCO, it will depend on the terms of each tenancy contract.
format Article
author Muhammad Asyraf Azni,
Suria Fadhillah Md Pauzi,
Ida Rosnita Ismail,
spellingShingle Muhammad Asyraf Azni,
Suria Fadhillah Md Pauzi,
Ida Rosnita Ismail,
Doctrine of frustration and force majeure clause: its application on tenancy contract during the movement control order in Malaysia
author_facet Muhammad Asyraf Azni,
Suria Fadhillah Md Pauzi,
Ida Rosnita Ismail,
author_sort Muhammad Asyraf Azni,
title Doctrine of frustration and force majeure clause: its application on tenancy contract during the movement control order in Malaysia
title_short Doctrine of frustration and force majeure clause: its application on tenancy contract during the movement control order in Malaysia
title_full Doctrine of frustration and force majeure clause: its application on tenancy contract during the movement control order in Malaysia
title_fullStr Doctrine of frustration and force majeure clause: its application on tenancy contract during the movement control order in Malaysia
title_full_unstemmed Doctrine of frustration and force majeure clause: its application on tenancy contract during the movement control order in Malaysia
title_sort doctrine of frustration and force majeure clause: its application on tenancy contract during the movement control order in malaysia
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2021
url http://journalarticle.ukm.my/16683/1/43762-151924-1-PB.pdf
http://journalarticle.ukm.my/16683/
https://ejournal.ukm.my/juum/issue/view/1378
_version_ 1702170863432892416
score 13.211869

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