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2012 MarsdenLR 1545

HIGH COURT SABAH & SARAWAK MIRI
CHEN HENG PING – Appellant
Versus
TAN TECK BENG & ANOR – Respondent
[Suit No: 22-94-2000 (MR)]



An oral agreement lacking specific terms is void under Section 30 of the Contracts Act 1950, validating dismissal of claims based on alleged fraudulent representations when unsupported by evidence.

Headnote:(A) Contracts Act 1950 - Section 30 - Land Code - Defendants were the registered co-proprietors of land; Plaintiff alleged a fraudulent oral agreement to construct a building in exchange for three units of shophouses - No evidence of the existence of such agreement was provided - The court held the terms were uncertain and thus void. (Paras 4.1.3, 4.1.9, 5.1)

(B) The Plaintiff’s claim of fraudulent misrepresentation was dismissed as he admitted the Defendants had never made any such representations. (Paras 4.3.2, 4.4)

Facts of the case:
The Plaintiff entered into a license agreement with the Defendants to operate a restaurant on agricultural land after initially seeking to construct shophouses but failed to prove an oral agreement concerning financial support for the same. The property’s status as agricultural land was known to both parties. (Paras 1.1-1.14, 4.1.2)

Findings of Court:
The Plaintiff failed to provide evidence substantiating his claims of financial losses or the existence of an oral agreement, leading to a ruling that his claims were made in bad faith and without grounds. (Paras 5.1-5.6)

Issues: The main questions involved the existence of an oral agreement, fraudulent representations, breach of contract, and whether the license agreement was legal. (Paras 4.1, 4.3, 4.6)

Ratio Decidendi: Oral agreements lacking specific terms are void under Section 30 of the Contracts Act 1950; the Court found no evidence supporting the Plaintiff's allegations or claims. (Paras 5.1-5.6)

Result: Plaintiff's claim dismissed; judgment entered in favor of the Defendants. (Paras 5.6)

Zulkifli Bakar J:

[1] Introduction

[1.1] The Defendants were at all material time the registered co-proprietors of all that parcel of land situate at Krokop Road, Miri containing an area of 1,659.0 sq metres and described as Lot 803 Miri Concession Land District (hereinafter referred as "the said land").

[1.2] The Plaintiff and the 1st Defendant has "orally agreed" with each other on matters which leads to the construction of a building on a portion measuring 76' x 95' of the said Land. The terms of the said oral agreement was unclear and infact are in dispute between the Plaintiff and Defendants.

[1.3] The Plaintiff commenced construction of the building on a portion measuring 76' x 95' of the said land at the end of 1991 or early 1992 and the building was completed in November 1993.

[1.4] The Plaintiff commenced his restaurant business under the name and style of "Red Wing Seafood Restaurant" in November 1993.

[1.5] The Miri Municipal Council, took action against the Defendants as registered owner of the said Land in respect of the illegal structures thereon and also action against the Plaintiff for not having a valid licence for the operation of his restaurant business.

[1.6] The Land & Survey Department wrote letters to the Defendants on the illegal usage of the said Land as a restaurant and threatened to re-enter the said Land.

[1.7] The Superintendent of Land and Surveys Miri lodged two Caveats against the said Land vide Caveat Instrument No L.1506/1994 and L.2092/1999 registered on 2 March 1994 and 27 March 1999 respectively (Exhibit D7 & exh D9).

[1.8] On 16 August 1994, the Plaintiff and the Defendants entered into a Licence Agreement (Exhibit P5) for a term of 14 years commencing from 1 January 1992 and expiring on 31 December 2005.

[1.9] (i) Meanwhile, the Plaintiff assisted the Defendants to submit building plans under the regularization of illegal structures exercise conducted by the Miri Municipal Council.

(ii) The Plaintiff also assisted the Defendants to appeal to the Land and Survey Department on the usage of the said Land for the restaurant business.

[1.10] On 10 December 1998, the Defendants was charged in Magistrate Court Miri for an offence under s 8 Building Ordinance 1994 but the said charge was subsequently withdrawn after the Defendants' has demolished a portion of the said illegal structures.

[1.11] The chronology of events related to the usage of the completed building by the Plaintiff are as follows:

(i) November 1993 - The Plaintiff commenced his restaurant business

(ii) 16 August 1994 - The parties signed the Licence Agreement (Exhibit P5) at M/s Sim & Yee Advocates' Office

- Plaintiff complied with the Licence Agreement

- Parties made appeals to the Land & Survey Department and Miri Municipal Council in respect of the illegal structures and usage of the said Land.

(iii) March 1996 - Plaintiff ceased his Restaurant business but continued to be in occupation of the building.

- Plaintiff removed the equipment/furniture for his restaurant.

- Plaintiff partitioned the buildings into five (5) portions by constructing brick walls.

(iv) 1 September 1996 - Plaintiff rented two (2) portions to Ling Tiing Lik and Ling Tiing Leong.

- Plaintiff rented one-half (1½) portions to Mr Toh.

(v) April 1999 - Plaintiff ceased paying rental to the Defendants

(vi) 12 October 1999 - Defendants' Advocate issued letter to Plaintiff demanding the arrears of rent and vacant possession of the building on or before 31 December 1999.

(vii) 17 February 2000 - Defendants has through M/s Sim & Yee written to the Plaintiff reminding him of the fact that he has failed to deliver vacant procession of the said building to the Defendants, rental in arrears and demanding him to yield up possession of the same to the Defendants on or before 31 March 2000.

(viii) 29 March 2000 - Plaintiff's advocates wrote letter to the tenants Ling Tiing Lik and Ling Tiing Leong requesting them to vacate the building.

(ix) 25 October 2000 - Plaintiff's Tenants wrote letter to 1

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