What are the available remedies to a purchaser when he is given a defective house out of time by the seller developer?

In LSSC Development Sdn Bhd v Thomas Iruthayam & Anor [2007] 2 CLJ 434, the Court of Appeal held that where purchasers were given a defective house out of time by the developer, for the defects, that was something for which they were entitled to be compensated. As for the delay in delivery, the contract itself contained a clause which provided the formula for the compensation that the developer must pay for its lateness. This was the clause to which the purchasers have recourse as it created a contractual obligation to pay a single sum by way of liquidated damages for the period during which they were kept out of the building for which they had already paid, such sum being calculated upon the basis set out in the sale and purchase agreement.

Popular posts from this blog

Law updates - Insurance (Malaysian law unless otherwise stated)

Law updates - General (Malaysian law unless otherwise stated)