2011 MarsdenLR 4435

HAMID SULTAN ABU BACKER
ADSIGNS IMEJ SDN BHD – Appellant
Versus
YAYASAN SELANGOR – Respondent

The court reinforced that a party's unilateral termination of a contract is invalid without proper notice, maintaining the right to specific performance under contractual agreements.

Headnote:(A) Specific performance claims governed by contractual agreements - Site Agreement dated 28.2.2008 - Plaintiff’s claim for extension and damages, Defendant’s counterclaim for vacant possession - The defendant's refusal to extend the agreement was based on the plaintiff's alleged failure to renew necessary licenses - Court found that the defendant failed to comply with notification requirements for breach; hence counterclaim dismissed. (Paras 3, 8, 9)

(B) Damages not awarded as plaintiff's claim was restricted by contract provisions regarding entitlements. (Paras 9(b), 11)

Facts of the case:
The plaintiff erected advertisement panels under a Site Agreement with the defendant, which was to expire on 31.12.2010. Plaintiff sought a two-year extension, but the defendant refused, citing lack of licenses.

Findings of Court:
Plaintiff's request for extension granted; counterclaim dismissed due to insufficient grounds.

Issues: Whether the plaintiff was entitled to an extension of the Site Agreement; whether there was a breach of agreement; entitlement to damages; defendant's claim for possession.

Ratio Decidendi: The court ruled that the defendant lacked the unilateral right to terminate the agreement without a 14-day notice, affirming procedural compliance was essential for claim validity.

Result: Plaintiff's request for extension and damages partly allowed; defendant’s counterclaim dismissed.