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Notice To Cure Breach Of Contract for Malaysia

Notice To Cure Breach Of Contract Template for Malaysia

A Notice to Cure Breach of Contract under Malaysian law is a formal written communication that serves to notify a contracting party of their breach of contractual obligations and provides them with an opportunity to remedy the situation within a specified timeframe. This document, governed by the Malaysian Contracts Act 1950 and related legislation, must clearly identify the breach, specify the required remedial actions, and state the consequences of non-compliance. It serves as a crucial step in contract enforcement and dispute resolution, potentially preceding legal action if the breach remains uncured.

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What is a Notice To Cure Breach Of Contract?

A Notice To Cure Breach Of Contract is a critical legal document used when one party to a contract fails to perform their obligations as agreed. Under Malaysian law, before pursuing legal remedies such as contract termination or damages, it is often necessary to provide the breaching party with formal notice and an opportunity to cure the breach. This document serves multiple purposes: it formally documents the breach, demonstrates the non-breaching party's compliance with contractual and legal requirements, provides a clear timeline for remediation, and establishes a foundation for potential legal action if the breach remains uncured. The notice must be drafted carefully to ensure it meets the requirements of Malaysian contract law and includes all necessary elements to be legally effective.

What sections should be included in a Notice To Cure Breach Of Contract?

1. Recipient Details: Full legal name and address of the breaching party, including any reference numbers or identifiers

2. Contract Reference: Clear identification of the relevant contract including date, parties, and contract reference number

3. Breach Description: Detailed description of the specific breach(es), including dates and relevant contract clauses violated

4. Impact Statement: Description of how the breach has affected the notifying party

5. Cure Requirements: Clear statement of what actions are required to remedy the breach

6. Cure Period: Specific deadline by which the breach must be cured (must be reasonable under Malaysian law)

7. Consequences Statement: Statement of intended actions if the breach is not cured within the specified period

8. Reservation of Rights: Standard clause preserving all legal rights and remedies available under the contract and law

What sections are optional to include in a Notice To Cure Breach Of Contract?

1. Previous Communications: Reference to any previous notifications or discussions about the breach - include when there has been prior correspondence

2. Specific Performance Requirements: Detailed technical or operational requirements for curing the breach - include when the cure process is complex

3. Dispute Resolution Reference: Reference to contract's dispute resolution provisions - include when escalation seems likely

4. Without Prejudice Statement: Include when the notice is part of ongoing settlement discussions

5. Cost Recovery Statement: Statement regarding recovery of costs incurred due to breach - include when seeking compensation

What schedules should be included in a Notice To Cure Breach Of Contract?

1. Contract Extract: Relevant excerpts from the original contract showing breached provisions

2. Evidence of Breach: Documentation proving the breach (photos, reports, correspondence, etc.)

3. Timeline of Events: Chronological listing of relevant events leading to the breach

4. Cure Compliance Checklist: Detailed list of actions required to cure the breach

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Malaysia

Publisher

Genie AI

Cost

Free to use

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