Malaysia legislation

Section 16

of AKTA UNDANG-UNDANG SIVIL 1956

Seksyen 16

(2)

The said section shall apply to contracts to which the Government or the Crown is a party in like manner as to contracts between subjects.

(3)

Where any contract to which the said section applies contains any provision which, upon the true construction of the contract, is intended to have effect in the event of circumstances arising which operate, or would but for the said provision operate, to frustrate the contract, or is intended to have effect whether such circumstances arise or not, the court shall give effect to the said provision and shall only give effect to the said section to such extent, if any, as appears to the court to be consistent with the said provision.

(4)

Where it appears to the court that a part of any contract to which the said section applies can properly be severed from the remainder of the contract, being a part wholly performed before the time of discharge, or so performed except for the payment in respect of that part of the contract of sums which are or can be ascertained under the contract, the court shall treat that part of the contract as if it were a separate contract and had not been frustrated and shall treat the said section as only applicable to the remainder of that contract.

(5)

The said section shall not apply—

(a)

to any charterparty, except a time charterparty or a charterparty by way of demise, or to any contract (other than a charterparty) or the corresponding provisions of any written law for the carriage of goods by sea; or

(b)

to any contract of insurance, save as is provided by sub-section (5) of the said section; or

(c)

to any contract to which section 7 of the Sale of Goods Act, 1893 (which avoids contracts for the sale of specific goods which perish before the risk has passed to the buyer) or the corresponding provisions of any written law applies, or to any other contract for the sale, or for the sale and delivery, of specific goods, where the contract is frustrated by reason of the fact that the goods have perished.

PROVISIONS RELATING TO THE DISPOSAL AND DEVOLUTION OF PROPERTY