Malaysia Case Law: Decisions & Judgments | LexChat

Topic

Exercise of contractual discretion

Legal area

Court

18 Jan 2024

PESAT BUMI SDN BHD CESCON ENGINEERS SDN BHD

Citation

W-02(C)(W)-1216-07/2022 (Mahkamah Rayuan)
Court

C
Case number

W-02(C)(W)-1216-07/2022 (Mahkamah Rayuan)

Appeal dismissed: respondent was entitled to challenge the genuineness and classification underlying variation orders despite not being party to PAM contract because it was not enforcing PAM terms; the consultant contract between the parties did not incorporate the PAM conclusiveness clause so statements of final account were not binding on respondent; the High Court’s factual findings that (a) certain VOs were not sufficiently proven and (b) appellant exercised its contractual discretion unreasonably were not plainly wrong and therefore should stand.
27 Jan 2021

ONG SAUT MEE & 3 LAGI GASING MERIDIAN SDN BHD

Citation

WA-22C-70-09/2019 (Mahkamah Tinggi)
Court

High Court
Case number

WA-22C-70-09/2019 (Mahkamah Tinggi)

Court held the Development Project is a housing development under the HDA but no prescribed HDR contract fitted sale-of-land-only lots, so the freely negotiated SPA and DMC are valid; the defendant lawfully and reasonably exercised contractual discretion in constructing the crib wall and did not breach; the defendant failed to discharge the burden to prove force majeure with a detailed delay analysis and is therefore liable for liquidated damages for 942 days, with judgment for plaintiffs for the balance after earlier payment plus interest and costs.