Yew Huoi, How & Associates | Leading Malaysia Law Firm

WHETHER PURCHASER ENTITLED TO CLAIM LIQUIDATED ASCERTAINED DAMAGES (LAD)

Bob has signed a contract with Developer Y to buy a condominium for RM 250,000. Bob was supposed to get vacant possession on October 23, 2021, according to the SPA. Unfortunately, developer Y walked away from the project. Bob also contributed RM60,000 to the purchase price and then drafted a letter requesting that the property’s development be finished and vacant possession be handed over by December 12, 2021. Developer Y has failed to do so again. Bob then filed a case against developer Y, seeking a ruling that the defendant had broken the provisions of the SPA, as well as RM60,000 in restitution and liquidated ascertained damages (LAD).

Q: Is there any statutory or contractual period for Bob to terminate his contract?

A: No. This is because as long as the breach of contract continues, Bob retains the right to terminate the SPA.

Q: Does Bob have to give notice of the claim for LAD?

A: No. Bob is not required to give any notice of an intention to file a claim for LAD under Schedule H. However, under section 56(3) of the Contract Act 1950, Bob is only required to give notice of his claim for LAD if he have indicated to the developer when the SPA became voidable or if Bob is ready to accept delivery of vacant possession at a later date.

Q: Developer Y held that LAD would only be claimable if Bob had paid the purchase price in full. Is this legal?

A: No, Bob does not have to pay in full to be eligible for LAD benefits. Because the house was not finished, the purchase price of an abandoned project would not have been paid in full.

Q: When can Bob claim for LAD?

A: Bob is entitled to claim for LAD immediately after the expiry of the contractual deadline for the defendant to hand over vacant possession of the property which is 23 October 2021.

Recent Post

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 »

SHIPPING AND ADMIRALTY IN REM – A SINKING ASSET – COURT ORDERS SALE OF ARRESTED VESSEL TO PRESERVE CLAIM SECURITY

In a landmark admiralty decision, the High Court ordered the pendente lite sale of the arrested vessel Shi Pu 1, emphasizing the principle of preserving claim security over the defendant’s financial incapacity. The court ruled that the vessel, deemed a “wasting asset,” could not remain under arrest indefinitely without proper maintenance or security. This case reinforces the necessity for shipowners to manage arrested assets proactively to prevent significant financial and legal repercussions.

Read More »

EMPLOYMENT LAW – IS DIRECTOR A DIRECTOR OR EMPLOYEE? UNPACKING DUAL ROLES IN EMPLOYMENT LAW

The Court of Appeal clarified the dual roles of directors as both shareholders and employees, affirming that executive directors can qualify as “workmen” under the Industrial Relations Act 1967. The decision emphasizes that removal as a director does not equate to lawful dismissal as an employee unless due process is followed. This case highlights the importance of distinguishing shareholder rights from employment protections, ensuring companies navigate such disputes with clarity and fairness.

Read More »

REGULATIONS – GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT 1947 ) – ARTICLE I

This legal update explores key provisions of the General Agreement on Tariffs and Trade (GATT 1947), focusing on Article I (Most-Favoured-Nation Treatment), Article II (Schedules of Concessions), Article XX (General Exceptions), and Article XXI (Security Exceptions). Article I mandates that any trade advantage granted by one contracting party to another must be extended unconditionally to all other parties. Article II ensures that imported goods from contracting parties receive treatment no less favourable than that outlined in agreed schedules, while also regulating permissible taxes and charges. Articles XX and XXI provide exceptions for measures necessary to protect public morals, health, security interests, and compliance with domestic laws. The provisions reflect the foundational principles of non-discrimination, transparency, and fair trade, while allowing for limited, well-defined exceptions. This summary is intended to provide a concise reference for businesses and legal practitioners involved in international trade law.

Read More »
en_USEN
× Contact Us