Essay About P1 And Lease Agreement

Case of Law
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The case of Low Seng v IKIP Education Sdn Bhd [2010] 7 MLJ 232, the plaintiff entered an agreement with the defendant whereby the defendant had agreed to lease a premises for a minimum period of three years from the plaintiff at a rent of RM2,500 per month commencing 1 April 1997. The plaintiff and the defendant have a lease agreement in form of letter (P1) signed by the defendant’s employee Azman Bin Ahmad. However, the defendant cancelled P1 and forwarded another letter (P2) to plaintiff on 28 March 1997. So, the plaintiff claimed for RM7,500 being three months rent arrears and RM55,000 being lost of monthly rent from 1 July 1997 until 31 March 2000 from the defendant. The defendant did not satisfied with the decision of the plaintiff. The defendant argued that P1 was only a letter to offer subject to defendant acceptance without properly accepting it for refused to pay the damages. And then the plaintiff submitted that P1 as the original lease document, clearly shows the intention of the defendant when the word bersetuju (agree) was used. If P1 is only letter offer as submitted by the defendant, the defendant would have used the word menawar (offer) or bercadang (propose) and not bersetuju (agree). As a result, P1 was taken to be an agreement, it has been terminated via a letter of termination from the defendant. The court held that plaintiff is only entitled to claim for the arrears of three months rent such as the sum of RM7,500, The court therefore was not accepted the plaintiffs claim for RM55,000 of general damages as damages was too remote and not substantiated with any evidence..