Issue
When does the cause of action accrued?
Judgment
- Cause of action is defined by Lord Wsher in Read v. Brown [1889] 22 QBD 128 as “the entire set of facts that gives rise to an enforceable claim; the phrase comprises every fact which, if traversed, the plaintiff must prove in order to obtain judgment”.
- Lord Diplock in Letang v. Cooper [1965] 1 QB 232 defined ’cause of action’ as ‘a factual situation, the existence of which entitled one person to obtain from the court a remedy against another’.
- Gill FJ in the Federal Court case of Nasri v. Mesah [1970] 1 LNS 85; [1971] 1 MLJ 32 explained that a cause of action accrues on the date of breach.
- In a sale of goods transaction, the cause of action arose when payment was due, or at the expiry of the term for payment stipulated in the contract: Menta Construction Sdn Bhd v. SPM Property & Management Sdn Bhd &Anor [2017] 1 LNS 675; [2017] MLJU 526.
- The words ‘credit term’ in the invoice refers to a period of time given to the buyer to settle the balance purchase price so a breach of contract will occur only if the buyer had failed to settle the balance purchase price after the expiry of the credit term.
- The Court of Appeal in Ly Furniture Sdn Bhd & Anor v. Lifestyle Enterprise, Inc & Anor and another Appeal [2015] 1 LNS 1557; [2015] MLJU 2347 held that payment for the goods sold and delivered should be made before the expiry of the credit term, and failure thereof will result in a breach of contract.
