The Plaintiff's claim against the Defendant were for damages arising from the failure on the part of the Defendant to renew the Licence Agreement entered into between the Plaintiff and the Defendant. The brief facts of the case are as follows. By virtue of a Licence Agreement dated 8.7.1991 "the Licence Agreement" the Defendant appointed the Plaintiff to manage and operate the Defendant's ESSO Petrol Service Station situated at 21/2 Mile, Jalan Kelang Lama, 58000 Kuala Lumpur [2] (the petrol station). According to the provisions of the Licence Agreement upon successful completion of one year probationary period the Plaintiff would be granted licence to manage and operate the petrol station for a further period of 5 years. Upon completion of this 5 year period the Defendant is given the option whether to allow the Plaintiff to continue to operate and manage the petrol station for another period of 5 years.

The Plaintiff had successfully completed the one year probationary period and therefore the Defendant allowed the Plaintiff to continue to manage and operate the petrol station for a further period of 5 years.

Upon the completion of this 5 year period the Defendant decide