Yew Huoi, How & Associates | Leading Malaysia Law Firm

TENANCY AGREEMENT – TERMINATION – VACANT POSSESSION – FORFEITURE OF DEPOSITS

Q: I rented a unit. However sometime in November 2020, the Landlord gave me a notice to terminate the tenancy agreement by 1.12.2020. I agree. What should I do to properly deliver vacant possession?
A:
STEP 1   – Check your tenancy agreement and identify the clauses relating to delivery of vacant possession. Set out a list for ease of reference.

STEP 2   – Issue a letter to make appointment with the Landlord to carry out a joint site inspection.

STEP 3   – After the joint site inspection, get the Landlord to sign a list of items that requires restoration (“List of Restoration”) of the unit.

STEP 4   – Perform the restoration work as per the List of Restoration. Record evidence of restoration eg. photographs before and after the restoration works.

STEP 5   – Deliver vacant possession on the date specify by the Landlord.

Q: Can the Landlord then sue me for additional restoration works outside the List of Restoration?
A: No. The List of Restoration is exhaustive. The Landlord cannot make additional demands from you as long as all restoration works as stated in the List of Restoration are carried out. No further restoration is required.

Q: Can the Landlord later sue me for delay in delivery of vacant possession because I have not carried out the restoration works or additional restoration works.
A: No. Once vacant possession is delivered, the tenant cannot be said to still be in occupation or holding over the unit. Tenant should maintain evidence of handing over the keys of the unit.

Q: Can the Landlord refuse to return my deposit?
A: No. Forfeiture of deposits only applies when there is breach of the tenancy agreement by the tenant. If the tenant has properly delivered vacant possession and follows the steps set out above, there should be no basis for Landlord to forfeit the deposit.

Case in Point: Parkwell Department Store Sdn Bhd v ICSD Ventures Sdn Bhd [2021] 1 MLJ 60.
Court of Appeal (Putrajaya) – Civil Appeal no: S-02(NCVC)(A)-1566-08 of 2017

Recent Post

ROAD ACCIDENT – INSURANCE COMPANY STRIKES BACK: HIGH COURT OVERTURNS ROAD ACCIDENT CLAIM

When a motorcyclist claimed he was knocked down in an accident, the Sessions Court ruled in his favor, holding the other rider fully liable. But the insurance company wasn’t convinced. They appealed, arguing that there was no proof of a collision and even raised suspicions of fraud. The High Court took a closer look – and in a dramatic turn, overturned the decision, dismissed the claim, and awarded RM60,000 in costs to the insurer. This case is a stark reminder that in court, assumptions don’t win cases – evidence does.

Read More »

CHARTERPARTY – LIEN ON SUB-FREIGHTS: CLARIFYING OWNERS’ RIGHTS AGAINST SUB-CHARTERERS

In Marchand Navigation Co v Olam Global Agri Pte Ltd and Anor [2025] 1 Lloyd’s Rep 92, the Singapore High Court upheld the owners’ right to enforce a lien on sub-freights under Clause 18 of the NYPE 1946 charterparty, ruling that the phrase ‘any amounts due under this charter’ was broad enough to cover unpaid bunker costs. Despite an arbitration clause between the owners and charterers, the sub-charterer was obligated to honor the lien, as it was not a party to the arbitration agreement. This decision reinforces that a properly exercised lien on sub-freights can be an effective tool for owners to recover unpaid sums, even in the presence of disputes between charterers and sub-charterers.

Read More »

SHIP SALE – LOSING THE DEAL, LOSING THE DAMAGES? THE LILA LISBON CASE AND THE LIMITS OF MARKET LOSS RECOVERY

In “The Lila Lisbon” [2025] 1 Lloyd’s Rep 101, the court ruled that a buyer cancelling under Clause 14 of the Norwegian Salesform Memorandum of Agreement is not automatically entitled to loss of bargain damages unless the seller is in repudiatory breach. The case clarifies that failing to deliver by the cancellation date does not constitute non-delivery under the English Sale of Goods Act 1979, as the clause grants the buyer a discretionary right rather than imposing a firm obligation on the seller. This decision highlights the importance of precise contract drafting, particularly in ship sale agreements, where buyers must ensure that compensation for market loss is explicitly provided for.

Read More »

CRIMINAL – KIDNAPPING – NO ESCAPE FROM JUSTICE: COURT UPHOLDS LIFE SENTENCE IN HIGH-PROFILE KIDNAPPING CASE

A 10-year-old child was abducted outside a tuition center, held captive, and released only after a RM1.75 million ransom was paid. The appellants were arrested following investigations, with their statements leading to the recovery of a portion of the ransom money. Despite denying involvement, they were convicted under the Kidnapping Act 1961 and sentenced to life imprisonment and ten strokes of the whip. Their appeal challenged the identification process, the validity of the charge, and the admissibility of evidence, but the court found the prosecution’s case to be strong, ruling that the appellants had acted in furtherance of a common intention and were equally liable for the crime.

Read More »

TRADEMARK – BUSINESS SABOTAGE AND TRADEMARK MISUSE

Businesses must be vigilant in protecting their contractual rights, brand identity, and operational control. In this case, unauthorized control over online booking platforms, misleading alterations to the hotel’s digital presence, and continued use of trademarks post-termination led to significant legal consequences. This ruling highlights the importance of clear agreements, strict compliance with contractual obligations, and proactive enforcement of intellectual property rights.

Read More »

NAVIGATION AND SHIPPING LAW – COLLISION REGULATIONS – COLLISION AT SEA – A WAKE-UP CALL FOR ADHERING TO NAVIGATION RULES

The collision between the FMG Sydney and MSC Apollo highlights the critical importance of adhering to established navigation rules. Deviations, delayed actions, and reliance on radio communications instead of clear, early maneuvers can lead to disastrous outcomes. This case serves as a stark reminder for mariners: follow the rules, act decisively, and prioritize safety above assumptions.

Read More »
en_USEN
× Contact Us