Lim

Lim

The court held that the obligation to deliver vacant possession and the running of time for liquidated damages commences from the date the deposit/booking fee was paid (17 July 1992), because payment of the deposit constituted the making of the contract and the developer thereby assumed the obligation to deliver within the agreed period; precedent (Faber Union and Hoo See Sen) supports this rule, so the developer was liable for delay and summary judgment was granted for the purchasers.

Citation
Lim
Parties
Appellant/purchasers: LIM EH FAH & ORS; Respondent/developer: Seri Maju Padu
Court
Malaysian court
Jurisdiction
Malaysia
Procedural Posture
Civil Appeal / Appeal From Summary Judgment Dismissal Under Order 26 a (subordinate Court Rules 1980)
Outcome
Appeal allowed; summary judgment granted in favour of the appellants; costs awarded to appellants.
Legal Topics
Vacant Possession, Liquidated Damages, Commencement of Time, Deposit as Constitutive of Contract, Time Is of the Essence
Source Language
en
Land Law Contract Housing Law Vacant Possession Liquidated Damages Commencement of Time Deposit as Constitutive of Contract Time Is of the Essence

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 7 Authorities cited 5 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

LIM EH FAH & ORS

Appellant/purchasers

Seri Maju Padu

Respondent/developer

Procedural Posture

Civil Appeal / Appeal From Summary Judgment Dismissal Under Order 26 a (subordinate Court Rules 1980)

Legal Issues

  1. 1 Whether time for delivery of vacant possession commences on date of deposit payment, date of signing the sale and purchase agreement, or date of deed of assignment
  2. 2 Whether contract is formed on receipt of deposit so that developers' obligation to deliver commences on that date
  3. 3 Whether purchaser entitled to liquidated damages for late delivery

Ratio Decidendi

The court held that the obligation to deliver vacant possession and the running of time for liquidated damages commences from the date the deposit/booking fee was paid (17 July 1992), because payment of the deposit constituted the making of the contract and the developer thereby assumed the obligation to deliver within the agreed period; precedent (Faber Union and Hoo See Sen) supports this rule, so the developer was liable for delay and summary judgment was granted for the purchasers.

Court Disposition

Appeal allowed; summary judgment granted in favour of the appellants; costs awarded to appellants.

Orders

  • Appeal allowed
  • Summary judgment application under Order 26A granted