{"id":7189,"date":"2020-04-09T13:48:22","date_gmt":"2020-04-09T05:48:22","guid":{"rendered":"http:\/\/alexchanglaw.com\/?p=7189"},"modified":"2024-11-25T12:33:09","modified_gmt":"2024-11-25T04:33:09","slug":"default-clause-instalment-scheme-full-payment-creditors-debtors-malaysia","status":"publish","type":"post","link":"https:\/\/alexchanglaw.com\/index.php\/default-clause-instalment-scheme-full-payment-creditors-debtors-malaysia\/","title":{"rendered":"Default clause instalment scheme full payment creditors debtors Malaysia"},"content":{"rendered":"\n<h3><strong>Default Clause In Instalment Payments<\/strong><\/h3>\n\n\n\n<p>A default clause in a contract provides that actions can be taken by the innocent (non-breaching\/ defaulting) party in the event of default by the&nbsp; party in breach, usually the debtor.<\/p>\n\n\n\n<p>Default occurs when one party to a contract fails to perform their obligations\/ duties under the contract or fulfil the contract terms,&nbsp; commonly known as a breach of contract.&nbsp;<\/p>\n\n\n\n<h3>Settlement by Instalment Payments<\/h3>\n\n\n\n<p>Very often when parties enter into a settlement of debts due, it can take the form of an instalment payments.&nbsp;<\/p>\n\n\n\n<h3>The Bane&nbsp;<\/h3>\n\n\n\n<p>Sometimes the parties in high spirit and joy of having received an instalment payment offer, often forget the bane of the instalment scheme.&nbsp; That is, unless it is specifically provided for, the creditor\u2019s rights to a full payment is delayed for the entire term of the instalment scheme. &nbsp;<\/p>\n\n\n\n<h3>A Recent Suit<\/h3>\n\n\n\n<p>In a recent matter, a creditor sued our client for the full amount after the first instalment was in default, after the full trial the honourable court only granted a judgement in favour of the creditor for the first instalment. The suit number is Kuala Lumpur Sessions Court Suit No. WA-B52NCC-428-06\/2018<\/p>\n\n\n\n<h3>The Saviour: The Default Clause&nbsp;<\/h3>\n\n\n\n<p>A properly drafted default clause will enable the creditors to demand for a full payment of the remaining&nbsp; instalments once there is a default. For example, the settlement is by way of 25 instalments, if the 7th instalment is default the entire balance from 7th to the 25th instalment is payable immediately.&nbsp;<\/p>\n\n\n\n<p>Without the default clause, the right to sue will only be accrued (available) after the due dates of the respective instalments<\/p>\n\n\n\n<p>With the default clause, it will save the creditors much time, please obtain proper advice on how to draft it.&nbsp;<\/p>\n\n\n\n<p>Lim Wen Mi<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"364\" height=\"495\" src=\"http:\/\/alexchanglaw.com\/wp-content\/uploads\/2020\/04\/Lim-Wen-Mi.jpg\" alt=\"\" class=\"wp-image-7191\"\/><figcaption>LIM WEN MI<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Default Clause In Instalment Payments A default clause in a contract provides that actions can be taken by the innocent (non-breaching\/ defaulting) party in the event of default by the&nbsp; party in breach, usually the debtor. Default occurs when one party to a contract fails to perform their obligations\/ duties under the contract or fulfil [&hellip;]<\/p>\n","protected":false},"author":1804,"featured_media":11394,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[66,69],"tags":[],"_links":{"self":[{"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/posts\/7189"}],"collection":[{"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/users\/1804"}],"replies":[{"embeddable":true,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/comments?post=7189"}],"version-history":[{"count":2,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/posts\/7189\/revisions"}],"predecessor-version":[{"id":7211,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/posts\/7189\/revisions\/7211"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/media\/11394"}],"wp:attachment":[{"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/media?parent=7189"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/categories?post=7189"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/tags?post=7189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}