Friday, April 23, 2010

Breach of contract

Hi,

I am 4th year, currently studying medicine. I am receiving sponsorship and the contract stipulate 10 years of my service to the government once I have graduated. I am very grateful for the oppurtunity of learning that I have received. However, I am facing a difficult situation deciding for my future career and 'family issues'. I might have to breach the contract and work in the UK once I complete my studies ( this for many reasons, mainly future family matters ) . In regards to this, I have a few questions that perhaps could be answered by you.

I have enquired my sponsor and they informed me that there's no means of negotiation apart from 60 days of " repayment claim " ( this include everything that I have received for the whole 5 years ) if a contract is breach. Could this be renogiated further because the sum that I might have to end up paying is approximately RM 1M.? I asked about monthly repayment but they did not give this option...
Also does it make any difference if I come back to serve for about 2 years and then breach the contract after? ... Will I then be able to repay my sponsor monthly ? The only confusion is that I have heard of similar case in regards to my situation, but this person was allowed to repay in monthly installments. Lastly, can i negotiate with my sponsor to not file a sue to my guarantors, but to me if they have to? Is there any possibilities of negotiating the repayment matter before I breach the contract as to avoid being sued etc. ? So far they have not stated any penalty clause but I am sure it is about RM 160 000.

Hope to receive some advice.

4 comments:

  1. I would expect a person of your background would have a better English competency. If I understand you correctly, you want to break a contract unilaterally. There is no problem when both parties to the contract agree in varying certain provisions of their contract. Why you think it is fair that your sponsos have to suffer just because you want to break the contract? What would you do if your spoonsors fail to provide you with their financial support to you unilaterally?

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  2. It is an enforceable contract between you and your sponsor, no one forced you to receive the sponsorship nor asked you to take up the offer at the very beginning.You were not a small kid nor signed the contract at a gun point.So,....what more to defend? How to defend? Karpal Sxxx also don't want to take up this case

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  3. Anyhow, u can be discharged from the contract between u n the sponsor in several ways.One of it is by your death.once u passed away, then all your problems are solved.Or if possible search for the contract n burn it.

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  4. I assume this is a breach of a term in your contract and not a breach of warranty coz the latter entails a different kind of remedy for the aggrieved party.

    Suggest you look at the contract which you have signed in all awareness, specifically at the term stipulating termination of contract.

    The aggrieved part, will seek damages from you should there be convincing evidence that you have default on the contract.

    They are thus entitled to seek damages from you, and the quantum will be determined by them.

    Unlike in the US whereby the damages are speculative, in English law, the damages are based on contract.

    Ultimately you have to pay damages, and an instalment them can be granted at their discretion.

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