[2019] CLJ JT (1)
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CUBIC ELECTRONICS SDN BHD (IN LIQUIDATION) v. MARS TELECOMMUNICATIONS SDN BHD
FEDERAL COURT, PUTRAJAYA
ZULKEFLI AHMAD MAKINUDIN PCA, RICHARD MALANJUM CJ (SABAH & SARAWAK),
AZAHAR MOHAMED FCJ, AZIAH ALI FCJ, ALIZATUL KHAIR OSMAN FCJ
[APPEAL NO: 02(f)-64-09-2016(W)]
21 NOVEMBER 2018

CONTRACT: Breach – Agreement – Sale and purchase agreement – Purchaser made offer to purchase land with earnest deposit – Purchaser made several requests for extension of time for execution of sale and purchase agreement – Land owner issued caution that at every request for extension of time, earnest deposits would be forfeited 'as liquidated damages and not by way of penalty', if purchaser fails to meet deadline for execution of sale and purchase agreement – Failure to execute sale and purchase agreement – Whether land owner entitled to forfeit earnest deposits – Whether amount of earnest deposits paid represented damages suffered by owner – Whether forfeiture of earnest deposits reasonable – Whether any additional deposits paid for extension of time for completion equally subject to forfeiture – Whether land owner entitled to claim interest from purchaser – Whether purchaser who has paid interest in consideration of extension of time entitled to claim refund of interest – Contracts Act 1950, s. 75

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