JUDGMENT

Lim Chong Fong J:

Introduction

[1] This is an appeal against the trial judgment of the Sessions Court in respect of a terminated construction contract for the construction of a club house in Johor.

[2] The Appellant/Defendant is a private limited company involved in the construction business.

[3] The Respondent/Plaintiff is also a private limited company involved in the construction business.

Background And Preliminary

[4] By a work order dated 21 January 2015 and followed with a letter of award dated 16 March 2015 (Sub-Contract), the Appellant appointed the Respondent as its sub-contractor to construct and complete club suite mock-up and Aman Desaru Club House with 46 units club suites respectively in Pantai Timur, Kota Tinggi, Johor ("Project").

[5] The employer of the Project is Malaysian Resources Corporation Bhd ("MRCB").

[6] During the course of the carrying of the Project, MRCB terminated the main contract with the Appellant which resulted in the termination of the Sub-Contract.

[7] The parties thereafter on 25 May 2017 executed a mutual agreement ("Mutual Agreement") primarily requiring the Respondent to assist the Appellant in its legal proceedings on the terminated main co