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Right of cancellation for booking of short-term accommodation through digital economy platform before movement control order (MCO)

Nowadays, many hotel operators and homestay owners (host) advertise their assets for short-term accommodation through digital platforms in search of a wider market while offering positive options for customers in terms of its compatible prices and variety of choices. However, the recent Movement...

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Main Authors: Farhanin, Abdullah Asuhaimi, Maheran, Makhtar, Zuhairah Ariff, Abd Ghadas
Format: Conference or Workshop Item
Language:English
English
Published: 2020
Subjects:
H Social Sciences (General)
HB Economic Theory
K Law (General)
Online Access:http://eprints.unisza.edu.my/1747/1/FH03-FUHA-20-44528.pdf
http://eprints.unisza.edu.my/1747/2/FH03-FUHA-20-44529.pdf
http://eprints.unisza.edu.my/1747/
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spelling my-unisza-ir.17472020-11-22T06:14:24Z http://eprints.unisza.edu.my/1747/ Right of cancellation for booking of short-term accommodation through digital economy platform before movement control order (MCO) Farhanin, Abdullah Asuhaimi Maheran, Makhtar Zuhairah Ariff, Abd Ghadas H Social Sciences (General) HB Economic Theory K Law (General) Nowadays, many hotel operators and homestay owners (host) advertise their assets for short-term accommodation through digital platforms in search of a wider market while offering positive options for customers in terms of its compatible prices and variety of choices. However, the recent Movement Control Order (MCO) declared by the Malaysian Government to control the spread of the COVID-19 pandemic has affected Malaysia's tourism industry. This had caused concern on the effect of the existing contracts entered by hosts and the guests via digital platforms as it was impossible for the parties to perform their contract, especially when the customers had made full payment of the bookings. Though MCO's effect has contributed great financial loss to the digital platforms and the hosts, the guests also suffered a loss due to the travel restriction and the money they have paid for the travel. Many hosts argued that since the MCO was an abrupt announcement from the government, they have discretionary power not to grant cancellation of booking since the contract's performance becomes impossible. Additionally, the digital platforms have provided terms or policies concerning the refund of payments, which applies to certain circumstances and the procedures stated in the platforms' policy statement. Thus, this article will analyse the legal effect of the frustrated contract with special reference to a booking made via digital platform before MCO and discuss the nature of the doctrine of frustration and force majeure in the contract law. The authors will adopt doctrinal and statutory analysis. Its findings will highlight the scope and effect of the doctrine of frustration in contracts entered with homestay owners via Malaysia's sharing economy platform. 2020 Conference or Workshop Item NonPeerReviewed text en http://eprints.unisza.edu.my/1747/1/FH03-FUHA-20-44528.pdf text en http://eprints.unisza.edu.my/1747/2/FH03-FUHA-20-44529.pdf Farhanin, Abdullah Asuhaimi and Maheran, Makhtar and Zuhairah Ariff, Abd Ghadas (2020) Right of cancellation for booking of short-term accommodation through digital economy platform before movement control order (MCO). In: International Seminar on Syariah and Law 2020, 27-28 Oct 2020.
institution Universiti Sultan Zainal Abidin
building UNISZA Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Sultan Zainal Abidin
content_source UNISZA Institutional Repository
url_provider https://eprints.unisza.edu.my/
language English
English
topic H Social Sciences (General)
HB Economic Theory
K Law (General)
spellingShingle H Social Sciences (General)
HB Economic Theory
K Law (General)
Farhanin, Abdullah Asuhaimi
Maheran, Makhtar
Zuhairah Ariff, Abd Ghadas
Right of cancellation for booking of short-term accommodation through digital economy platform before movement control order (MCO)
description Nowadays, many hotel operators and homestay owners (host) advertise their assets for short-term accommodation through digital platforms in search of a wider market while offering positive options for customers in terms of its compatible prices and variety of choices. However, the recent Movement Control Order (MCO) declared by the Malaysian Government to control the spread of the COVID-19 pandemic has affected Malaysia's tourism industry. This had caused concern on the effect of the existing contracts entered by hosts and the guests via digital platforms as it was impossible for the parties to perform their contract, especially when the customers had made full payment of the bookings. Though MCO's effect has contributed great financial loss to the digital platforms and the hosts, the guests also suffered a loss due to the travel restriction and the money they have paid for the travel. Many hosts argued that since the MCO was an abrupt announcement from the government, they have discretionary power not to grant cancellation of booking since the contract's performance becomes impossible. Additionally, the digital platforms have provided terms or policies concerning the refund of payments, which applies to certain circumstances and the procedures stated in the platforms' policy statement. Thus, this article will analyse the legal effect of the frustrated contract with special reference to a booking made via digital platform before MCO and discuss the nature of the doctrine of frustration and force majeure in the contract law. The authors will adopt doctrinal and statutory analysis. Its findings will highlight the scope and effect of the doctrine of frustration in contracts entered with homestay owners via Malaysia's sharing economy platform.
format Conference or Workshop Item
author Farhanin, Abdullah Asuhaimi
Maheran, Makhtar
Zuhairah Ariff, Abd Ghadas
author_facet Farhanin, Abdullah Asuhaimi
Maheran, Makhtar
Zuhairah Ariff, Abd Ghadas
author_sort Farhanin, Abdullah Asuhaimi
title Right of cancellation for booking of short-term accommodation through digital economy platform before movement control order (MCO)
title_short Right of cancellation for booking of short-term accommodation through digital economy platform before movement control order (MCO)
title_full Right of cancellation for booking of short-term accommodation through digital economy platform before movement control order (MCO)
title_fullStr Right of cancellation for booking of short-term accommodation through digital economy platform before movement control order (MCO)
title_full_unstemmed Right of cancellation for booking of short-term accommodation through digital economy platform before movement control order (MCO)
title_sort right of cancellation for booking of short-term accommodation through digital economy platform before movement control order (mco)
publishDate 2020
url http://eprints.unisza.edu.my/1747/1/FH03-FUHA-20-44528.pdf
http://eprints.unisza.edu.my/1747/2/FH03-FUHA-20-44529.pdf
http://eprints.unisza.edu.my/1747/
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score 13.211869

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