Koperasi Kastam Diraja Malaysia Bhd v Yi Go Group Sdn Bhd [2021] 5 MLJ 590

The non-defaulting party is entitled to claim damages for the breach of contract by the defaulting party.

What may be claimed is captured in s74 of the Contracts Act 1950, which provides as follows:

(1) When a contract has been broken, the party who suffers by breach is entitled to receive, from the party who has broken the contract, compensation for any loss or damage caused to him thereby, which naturally arose in the usual course of things from the breach, or which the parties knew, when they made the contract, to be likely to result from the breach of it.

(2) Such compensation is not to be given for any remote and indirect loss or damage sustained by reason of the breach.

(3) When an obligation resembling those created by contract has been incurred and has not been discharged, any person injured by the failure to discharge it is entitled to receive the same compensation from the party in default as if the person had contracted to discharge it and had broken his contract.

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