Friday, 01 May 2020 07:07 AM MYTThe defendant was a licensed housing developer. The defendant embarked on a housing project in Bandar Damansara. Pursuant to 2 sale agreements, the defendant sold two properties to the plaintiff. The defendant delayed in delivering vacant possession for the properties and further delayed in completing the common facilities.
In its defence, the defendant contended that it was due to factors or events beyond its control, namely dispute with the main contractor, escalation in the cost of raw materials and finance charges, rectification works and several others. As there was no agreement between the parties to the sale to include a force majeure clause in their contract, there could be no question of the events being beyond the control of the defendant so as to deny the plaintiff the right to late delivery charges expressly stipulated in the sale agreements.
The High Court found that the plaintiff’s claim was plain and obvious premised on the sale agreements. Both parties were bound by the terms and conditions of the sale agreements, particularly as to the time for delivery of vacant possession and liquidated damages payable for late delivery.There are many similar cases like the above. Some are reported, but many more are not.
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