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    Stealth Infra SDN V SR Alias Bin Marjoh

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    jacq
    1) The Plaintiff and Defendant had entered into an agreement through a letter of award for the Plaintiff to develop a luxury condominium project. 2) The court found that a valid contract had been formed between the parties based on the offer in the letter of proposal and acceptance by the Plaintiff signing the letter of award. 3) The court ruled that the Defendant's termination of the letter of award was unlawful as it was a unilateral decision without discussing reasons for termination with the Plaintiff. The court therefore allowed the Plaintiff's claim.

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    Stealth Infra SDN V SR Alias Bin Marjoh

    Uploaded by

    jacq
    100 views2 pages
    1) The Plaintiff and Defendant had entered into an agreement through a letter of award for the Plaintiff to develop a luxury condominium project. 2) The court found that a valid contract had been formed between the parties based on the offer in the letter of proposal and acceptance by the Plaintiff signing the letter of award. 3) The court ruled that the Defendant's termination of the letter of award was unlawful as it was a unilateral decision without discussing reasons for termination with the Plaintiff. The court therefore allowed the Plaintiff's claim.

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    summary of cases

    Original Title

    Stealth Infra Sdn v Sr Alias Bin Marjoh

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    1) The Plaintiff and Defendant had entered into an agreement through a letter of award for the Plaintiff to develop a luxury condominium project. 2) The court found that a valid contract had been formed between the parties based on the offer in the letter of proposal and acceptance by the Plaintiff signing the letter of award. 3) The court ruled that the Defendant's termination of the letter of award was unlawful as it was a unilateral decision without discussing reasons for termination with the Plaintiff. The court therefore allowed the Plaintiff's claim.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    100 views2 pages

    Stealth Infra SDN V SR Alias Bin Marjoh

    Uploaded by

    jacq
    1) The Plaintiff and Defendant had entered into an agreement through a letter of award for the Plaintiff to develop a luxury condominium project. 2) The court found that a valid contract had been formed between the parties based on the offer in the letter of proposal and acceptance by the Plaintiff signing the letter of award. 3) The court ruled that the Defendant's termination of the letter of award was unlawful as it was a unilateral decision without discussing reasons for termination with the Plaintiff. The court therefore allowed the Plaintiff's claim.

    Copyright:

    © All Rights Reserved
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    of 2

    Stealth Infra Sdn. Bhd v.

    SR Alias Bin Marjoh (2016) 9 MLJ 433

    Facts

    The Plaintiff had issued a letter of proposal dated 27 February 2007 to the Defendant to propose
    a joint-venture project development of a luxury condominium building. During the meeting
    between the Plaintiff and the Defendant on 28 February 2007, the Defendant had issued a
    letter of award (“the agreement”) to the plaintiff to develop the project. The plaintiff had on
    13 March 2007 signed and placed its seal upon the agreement signifying its acceptance of the
    terms. The defendant later issued a revocation letter stating the agreement was terminated.

    Issues
    1. Whether a binding agreement was formed through the issuance of the letter of award
    and execution of the same by the plaintiff
    2. Whether the termination of letter of award was lawful.

    Held
    For the first issue, the court found that there was a valid offer and acceptance of the plaintiff’s
    letter of award. Further, there was free consent given by both of the parties because all the
    essential terms of the agreement were agreed upon as contained in the letter of award. The
    plaintiff did perform consideration as there was promise by the plaintiff to develop the property
    under one of the terms in letter of the award and to make the deposit payment of RM1,000
    upon the execution of the development rights agreement. In consideration, the defendant
    agreed to assign the development rights to plaintiff and granting the plaintiff a power of
    attorney in order to perform the development rights.

    The court further held that the letter of award is a “finalised” form of contract and not
    conditional nor contingent as alleged by Defendant. This decision was derived based on
    testimonies given by plaintiff’s and defendant’s witness in justifying that the terms and
    conditions in letter of award was a term to be fulfilled by both of the parties in which, the
    contract is not subjected to any preliminary conditions before it can be truly performs and
    executed.
    For the second issue, the court found that the termination of the letter of award by the
    defendant was unlawful as it was unilateral decision without giving reasons in the termination
    letter. The defendant did not discuss with plaintiff prior to the terminating the agreement. In
    this case, The plaintiff was not informed with any reasons as to why the defendant regarded
    the letter of award was invalid and neither were the reasons stated in the notice of termination.
    Hence, the court decided it was unfair and therefore rendered the termination letter as unlawful.

    In the end, the court allowed the plaintiff’s claim with costs of RM 50,000.

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