Jayadeep Hari & JamilJayadeep Hari & JamilJayadeep Hari & JamilJayadeep Hari & Jamil
  • About
  • Our People
    • Partners
    • Consultant
    • Associates
  • Practice Areas
  • Publications
    • Legal Updates
    • Legal Cauldron (Temporary suspended)
    • Articles
    • News & Bulletin
  • We Care
  • Careers
  • Contact Us

Legal Update 10 of 2016

    Home Legal Updates Legal Update 10 of 2016
    NextPrevious

    Legal Update 10 of 2016

    By admin | Legal Updates | 0 comment | 8 January, 2017 | 0

    Contract – Whether vacant possession delivered to purchaser before occurrence of fire.

    Case:

    Lucy Wong Nyuk King & Anor v Hwang Mee Hiong [2016] 4 CLJ 813

    Brief Facts:

    • The appellants (“Lucy”) were the co-proprietors of a double storey intermediate terraced shophouse (“the property”).
    • Lucy agreed to sell the property to the respondent (“Hwang”) for RM320,000 via a sale and pur-chase agreement (“the SPA”).
    • Hwang had paid a deposit of RM55,000 to Lucy for the purchase of the property, leaving a bal-ance sum of RM265,000 to be settled.
    • At the material time, Hwang’s husband was renting the property from Lucy.
    • After the SPA was signed, Lucy had not terminated the tenancy agreement and the tenancy con-tinued until the occurrence of a fire on 5th November 2008.
    • The fire rendered the property unfit for occupation.
    • On 13th November 2008, Hwang served Lucy a notice to terminate the contract pursuant to cl 15 of the SPA and requested for the return of the deposit and part payment of RM85,000 previously paid.
    • On 19th January 2009, Lucy asked Hwang to pay the balance of the purchase price within 30 days.
    • Hwang thus commenced the present action against Lucy.
    • The High Court held in favour of Hwang and found that on the occurrence of a fire, Hwang not having been handed over vacant possession of the property by Lucy, had the right to terminate the SPA.
    • According to the High Court, Lucy having continued to maintain possession of the property through the tenancy agreement, and not delivering vacant possession of the property had there-fore justified the termination of the SPA.
    • The Court of Appeal agreed with the findings of the High Court.
    • Aggrieved, Lucy filed this instant appeal to the Federal Court.

    Decision: Dismissing Lucys appeal.

    • Clause 15 of the SPA unequivocally provided that in the event before the delivery of vacant pos-session, the property was destroyed or damaged by a fire and other causes, either party was en-titled to unilaterally rescind the contract by a written notice.
    • Furthermore, cl. 15 also entitled Hwang as the purchaser to demand a refund of the deposit and all whatsoever monies paid.
    • Vacant possession of the property cannot be “deemed” to have been delivered upon signing of the SPA in a situation which would lead to injustice or absurdity.
    • In this case, Lucy had claimed and received a sum of RM85,000 from the insurance company as fire insurance compensation for the damage to the property caused by a fire.
    • Where the risk and benefit of any insurance of the property still remained with the vendors, i.e. Lucy, it would be unjust or absurd to deem that vacant possession has been delivered to Hwang.
    • There was more than sufficient uncontroverted evidence to support the findings of the High Court and the Court of Appeal.
    • The fact is that Lucy had never delivered vacant possession of the property to Hwang before the occurrence of a fire on 5th November.
    • Under the circumstances, Hwang’s reliance on cl. 15 of the SPA to terminate the agreement was wholly justified and in accordance with the terms and conditions of the SPA.

    No tags.

    admin

    https://t.me/pump_upp

    More posts by admin

    Related Post

    • Legal Update 9 of 2020

      By jhj admin | 0 comment

      Can a civil servant be dismissed from employment by a local authority without affording him the right to be heard? Case: PIHAK BERKUASA TATATERTIB MAJLIS PERBANDARAN SEBERANG PERAI & ANOR v. MUZIADI MUKHTAR [2020] 1Read more

    • Legal Update 10 of 2020

      By jhj admin | 0 comment

      Can the payment of quit rent, assessment rates, electricity and water bills be used to prove ownership of property? Case: HS REALTY SDN BHD v. YOW HONG SOON [2020] 1 LNS 230 Brief Facts: HSRead more

    • Legal Update 11 of 2020

      By jhj admin | 0 comment

      Can accused persons who are convicted of disobeying the Movement Control Order appeal for alternative punishment instead of imprisonment in the interest of justice? Case: CHIN CHEE WEI & ANOR V PP [2020] 1 LNSRead more

    • Legal Update 12 of 2020

      By jhj admin | 0 comment

      Can a foreign national have a permanent contract of employment? Case: AHMAD ZAHRI MIRZA ABDUL HAMID v. AIMS CYBERJAYA SDN BHD [2020] 1 LNS 494 Brief Facts: Ahmad, an expatriate, received a letter of appointmentRead more

    • Legal Update 13 of 2020

      By jhj admin | 0 comment

      Can the giving of legal advice by an adjudged bankrupt, whose practising certificate has been suspended, amount to practising law in contravention of the Legal Profession Act 1976? Case: DARSHAN SINGH KHAIRA v. ZULKEFLI HASHIMRead more

    • Legal Update 14 of 2020

      By jhj admin | 0 comment

      Can individual parcel owners enforce rights relating to common property on their own behalf? Case: SYARIKAT EAST COAST & ORS v. MAKNA MUJUR SDN BHD & ORS [2020] 2 MLRA 440 Brief Facts: Syarikat EastRead more

    • Legal Update 15 of 2020

      By jhj admin | 0 comment

      When is the point of time when a debtor is considered to be unable to pay his debts? Case: AFFIN BANK BERHAD V. ABU BAKAR ISMAIL [2020] 2 MLRA 99 Brief Facts: Affin Bank BerhadRead more

    • Legal Update 16 of 2020

      By jhj admin | 0 comment

      Whether an article containing allegations of corrupt practices and giving of bribes was defamatory to the owner of an education institution? Case: EAGLE ONE INVESTMENT LTD & ORS V. ASIA PACIFIC HIGHER LEARNING SDN BHDRead more

    Leave a Comment

    Cancel reply

    Your email address will not be published. Required fields are marked *

    NextPrevious

    JHJ Bulletin

    • S.Jeyaraman: The Magic of Memory
    • Andreas Dorn: Your Unconscious Mind on Change and Money

    Legal Updates

    • Legal Update 22 of 2022
    • Legal Update 21 of 2022
    • Legal Update 20 of 2022
    • Legal Update 19 of 2022
    • Legal Update 18 of 2022
    • Legal Update 17 of 2022
    • Legal Update 16 of 2022

    Legal Cauldron

    • 2
      0

      Legal Cauldron 1 of 2016

      Click here to view & download
    • 2
      0

      Legal Cauldron 2 of 2015

      Click here to view & download
    Copyright 2017 All Rights Reserved Contact Us         Like & Follow Us On:Facebook | Instagram | LinkedIn Disclaimer | Privacy Policy
    • About
    • Our People
      • Partners
      • Consultant
      • Associates
    • Practice Areas
    • Publications
      • Legal Updates
      • Legal Cauldron (Temporary suspended)
      • Articles
      • News & Bulletin
    • We Care
    • Careers
    • Contact Us
    Jayadeep Hari & Jamil