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1 vii TABLE OF CONTENTS CHAPTER TITLE PAGE Title Declaration Dedication Acknowledgement Abstract Abstrak Table of Contents List of Cases List of Abbreviations i ii iii iv v vi vii x xiii 1 INTRODUCTION 1.1 Background Study Problem Statement Research Objectives Scope of the Study Importance of the Study Research Methodology 9

2 viii CHAPTER TITLE PAGE 2 FREEDOM OF CONTRACT 2.1 Introduction Freedom of Contract as the Starting Point Party Freedom to Contract Term freedom Sanctity of contract Limitation of Freedom of Contract Decline of Freedom of Contract Conclusion 32 3 CONTRACTING OUT OF THE STATUTE OR COURT JURISDICTIONS 3.1 Introduction Using Exclusion Clause to Contract Out Contracting Out of Statutory Provision Contracting out of Contract Act Contracting out of Section 29 of the CA 1950 and Limitation Act Contract out of National Land Code Contract out of by-law of Private body Contracting out of Sales and Goods Act 1957 (SOGA 1957) Validity of Contracting Out of Statutory Protection Conclusion 72 4 CONTRACTING OUT IN CONSTRUCTION INDUSTRY LIQUIDATED DAMAGES 4.1 Construction Contracts Provision for Damages as Remedy to Breach of Contract 76

3 ix CHAPTER TITLE PAGE 4.3 Statutory Provision of Liquidated Damages Contractual Provision of Liquidated Damages Analysis Conclusion 97 5 AUTOMATIC DETERMINATION IN STANDARD FORM OF BUILDING CONTRACT 5.1 Introduction Statutory Provision that are relevant to determination of contract upon insolvency Contractual Provision in Standard Form of Building Contract Does the Automatic Determination Clause Contract Out of the Statutory Provision? Right to Terminate A Contract In The Event of Party s Insolvency Determination of Contract or Contractor s Employment Right of Liquidator to adopt the contract Validity of Contracting Out of Statutory Conclusion CONCLUSION AND RECOMMENDATIONS 6.1 Introduction Summary of Research Findings Problems Encountered During Research Further Research Conclusion 128 REFERENCES 130

4 x LIST OF CASES CASES Amarjit Singh a/l Kartar v. Kung Boon Chin & Ors. Unreported, 51 Aroomogum Chitty v. Lim Ah Hang [1894] 2 SSLR Asa ari bin Muda and ors v. Kerajaan Malaysia and ors [2006] 5 MLJ 322 BFI Group of Companies Ltd v. DCB Integration Systems Ltd(1987) CILL 348 British Eagle International Airlines Ltd v Compagnie Nationale Air France. [1975] 2 All ER 390. British Movietonews Ltd. V. London District Cinemas, Ltd. [1952] AC Chanter v. Hopkins,[1838] 4 M & W 339 at p.404; 8 LJ Ex Chin Hooi Nan v Comprehensive Auto Restoration Service Sdn Bhd & Anor [1995] 1 BLJ 25. Clydeback Engineering and Shipbuiliding Co Ltd v Don Jose Yzquierdo Y Custaneda[1905] AC 6 Dancom Telecommunication (M) Sdn Bhd v Uniasia General Insurance Berhad [2008] 6 MLJ 52 F.G. Cullis Construction Limited v. HMV Fields (Properties) Limited and Another Godcharles v. Wigeman [1886] 113 Pa. St Hadley v Baxendale [1854] 9 Exch , 96 Isito Electronic Sdn Bhd v. Teh Ah Kiam & Anor [2004] 3 CLJ J & Wong Logging Contractor v Arab Malaysian Eagle Assurance Bhd [1993] 1 MLJ 240 Johor Coastal Development Sdn Bhd v Constrajaya Sdn Bhd [2009] 4 MLJ , 51,82, , 126

5 xi CASES Joo Yee construction Pte Ltd v Diethelm Industries Pte Ltd[1990] 2 MLJ Karsales (Harrow) Ltd. V. Wallis [1956] 1 WLR 936 CA. 69 Keen Builders Sdn Bhd v Utara Dua (M) Sdn Bhd (Samudra (Malaysia) Sdn Bhd, Garnishee)[1998] 2 CLJ Supp 256. Kimlin Housing Development Sdn Bhd (Appointed receiver and manager) (In liquidation) v Bank Bumiputra (M) Bhd & Ors[1997] 2 MLJ Linggi Plantations Ltd v Jagatheesan [1972] 1 MLJ 89 79, Lionel v Government of Malaysia[1971] 2 MLJ Malayan Banking Bhd v. Yap Seng Kee & Ors. [1988] 1 MLJ Maxisegar v Silver Concept [2005] 5 MLJ 1 17 Murugesan v. Khrisnasamy & Anor [1958] MLJ National Westminster Bank Ltd v Halesowen Presswork and Assemblies Ltd [1972] AC 785 New Zealand Insurance Co Ltd v Ong Choon Lin (t/a Syarikat Federal Motor Trading )[1992] 1 MLJ , Oil & Natural Gas [2003] SC Olga Tellis v Bombay Municipal Corp AIR 1986 SC Olley v. Marlborough Court Limited, [1949] 1 KB Ooi Boon Leong & Ors v Citibank N.A., [1984] 1 MLJ , 40, 46, 50-51, 72, 127, 129 Parker v. South Eastern Railway Co [1877] 2 CPD 416 at p Perar BV v General Surety & Guarantee [1994] 66 BLR Pinnocks Bros v. Lewis & Peats Ltd. [1923] 1 KB Printing and Numerical Registering co v Sampson (1875) LR 19 Eq , 12, 17

6 xii CASES Pusat Bandar Damansara Sdn Bhd & Anor v. Yap Han Soo & Sons Sdn Bhd [2000] 1 MLJ , 44 Re Tru-Grain Co Ltd [1921] VLR 653 [27 ALR 390] 109 Realvest Properties Sdn Bhd v Co-operative Central Bank Ltd (In receivership) [1996] 2 MLJ Ritchie v. People[1895] 155 Ill Sakinas Sdn Bhd v Siew Yik Hau & Anor 81 Schuler v Wickman [1974] AC. 235, [1973] 2 All ER Sekawan Guards Sdn Bhd v Thong Guan Sdn Bhd [1995] 2 CLJ 304. Selva Kumar a/l Murugiah v Thiagarajah a/l Retnasamy [1995] 1 MLJ , 42-45, 80-82, 88-90, 92, 95-97, 126 SS Maniam v The State of Perak [1957] MLJ Suisse Atlantique Societe D' Armement Maritime S.A. v. N. V. Rotterdamsche Kolen Centrale [1967] AC Theresa Chong v Kin Khoon & Co [1976] 2 MLJ 253 (FC) 62 Union Fédérale des Consommateurs v AOL France 4, 26-27, 44, 53 Wee Lian Construction Sdn Bhd v. Ingersoll-Jati Malaysia Sdn Bhd.[2005] 1 MLJ 162 Westminster City Council v. Reema Construction Ltd. and Others (No.2) [1990] 24 ConLR 26. Willment Bros Ltd v North West Thames Regional Health Authority (1986) 26 BLR 51 (CA) ,

7 xiii LIST OF ABBREVIATIONS AC Law Reports: Appeal Cases, House of Lords All ER All England Law Reports App. Cas. Appeal Cases B & C Court of King s Bench BLR Building Law Reports CA 1950 Contract Act 1950 CIDB 2000 CIDB Standard Form of Contract for Building Works (2000 Edition) Con LR Construction Law Reports ER English Report Eq. Law Reports: Equity Exch Law Reports: Court of Exchequer HL House of Lords IEM 1989 IEM Standard Conditions of Contract, 1989 JCT Joint Contracts Tribunal JCT 63 JCT Standard Form of Building Contract, 1963 KB Law Reports: King s Bench Division Lloyd s Rep Lloyd s List Reports LR Law Reports MLJ Malayan Law Journal PAM Pertubuhan Arkitek Malaysia PAM 98 PAM Standard Conditions of Contract, 1998 PAM 2006 PAM Standard Conditions of Contract, 2006 PAM/ISM 69 PAM/ISM Standard Conditions of Contract, 1969 PWD Public Work Department PWD 203A (Rev.10/83) PWD Standard Form of Contract (With Quantities) PWD 203A (Rev.2007) PWD Standard Form of Contract (With Quantities), [Revised 2007] QB Law Reports: Queen s Bench Division SOGA 1957 Sale of Goods Act 1957 WLR Weekly Law Report

For the Court of Appeal decision, see [2012] 4 AMR 330 or

For the Court of Appeal decision, see [2012] 4 AMR 330 or Legal Updates May 2013 Cases Administrative Law Wong Kin Hoong & Anor (suing for themselves and on behalf of all of the occupants of Kampung Bukit Koman, Raub, Pahang) v Director General of the Department