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Case Review

783 words - 4 pages

Yeoh Theam Poh & Anor v Bench Win Sdn Bhd & Anor and other suits [2013] 8 MLJ
Fact of the case
The plaintiffs in the three suits occupied a dwelling(‘the premises’) built on state land that was built by the plaintiff’s father who was given the temporary occupying licence(TOL). The father still dwelling on the premises after the TOL had been cancelled without permission and approval from the state. The first defendant (Bench Win), a housing developer wanted to built an access to the housing project on the premises occupied by the plaintiffs. The compensation agreement was entered between them in separate that in return for the plaintiffs vacant the premises, the second defendant ...view middle of the document...

Thus the plaintiffs alleged consideration was unlawful under section 24(a) of the Contract Act 1950.
Discussion and Reason
Pertaining to the defence of illegality, learned counsel for the plaintiffs submitted that the first defendant had misconstrued the law in its contention. He referred to section 24(a)-(b) of the Contracts Act 1950 to submit that there is nothing illegal of the consideration of object of the compensation agreement because the object and purpose of the contract was merely to vacate and demolish the said promises and not to perpetuate or to further any unlawful occupation of the state land notwithstanding that the plaintiff may will be squatters of the land. It was further submitted that the first defendant had failed to prove that the contract was entered into with the object or committing an illegal act or that the contract was one which was expressly or impliedly prohibited by statute. The first defendant in brief had submitted that the representations of the plaintiffs being licensee or subtenant of the licensee were found in the written compensation agreement respectively which presupposed that the plaintiffs were in possession of a valid licence to occupy the state land. To assert and sign as Licencee or sub-tenants to the licensee when the plaintiffs did not possess a valid TOL is a clear assertion of untruth which makes the...

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