“In Malaysia, the terminology of fundamental breach, which is a concept of the common law, though not in exact term terms has become a creature of statute (see Choo Yin Loo v Visuvalingam Pillay (1930) 7 FMSLR 135). The relevant provision which is now enshrined in s 40 of the Act reads:
When a party to a contract has refused to perform, or disabled himself from performing, his promise in its entirety, the promisee may put an end to the contract, unless he has signified, by words or conduct his acquiescence, in its continuance.
For the innocent party to rescind, two situations must prevail, namely that the offending party had refused to perform or disabled himself from performing his promise...”
