標籤: Independent Audit

LEGAL UPDATES – CONTRACT – BREACH – LEGITIMATE EXPECTATION – HOPE IS NOT A CONTRACT: COURT REJECTS CLAIM BASED ON LEGITIMATE EXPECTATION

Can a party recover millions based on an expectation that a business relationship would continue? In Shapers International Sdn Bhd & Ors v Halal Industry Development Corp Sdn Bhd & Anor [2026] 10 MLJ 58, the High Court held that it cannot. While the plaintiffs successfully recovered the unpaid balance confirmed by a binding independent audit, the Court rejected their RM32 million claim for loss of future opportunities, holding that legitimate expectation cannot override clear contractual terms. Where a contract expressly requires fresh negotiations and written agreement for future projects, commercial expectations alone do not create enforceable legal rights.