FIRST RELIANCE TARGET SDN BHD v PLANETARIUM MELAKA SDN BHD

ma-24ncvc-399-09-2025 High Court (Mahkamah Tinggi) 5 May 2026 • MA-24NCvC-399-09/2025

Catchwords

Contract law — Privatization cum concession agreement — Termination — Alleged mutual termination — Draft mutual termination agreement — Whether binding agreement concluded — Whether silence constitutes acceptance — Effect of non-response to solicitors’ letter — Whether “deeming clause” effective — Offer and acceptance — Requirement of unequivocal acceptance — Contracts Act 1950, ss 6(b), 7 Contract law — Formation — Agreement subject to further formal contract — Draft agreement forwarded for approval and amendment — Whether parties intended to be bound prior to execution — “Subject to contract” principle — Whether negotiations or concluded contract Contract law — Termination — Contractual termination provisions — Whether termination effected in accordance with agreement — Absence of formal termination notice — Whether filing of proceedings constitutes rescission — Inconsistent bases of termination (mutual termination, rescission, frustration) Contract law — Restitution — Claim for refund of RM1,000,000 — Nature of payment — Whether refundable deposit — Contractual allocation of risk — Applicability of contractual clauses governing consequences of termination — Contracts Act 1950, ss 65, 66 Contract law — Damages — Claim for development costs (RM3,560,845.82) — Whether recoverable — Requirement of strict proof — Nexus to contract — Whether claim sustainable in originating summons Civil procedure — Originating summons — Suitability — Whether substantial disputes of fact — Whether court should determine on affidavit evidence — Whether conversion to writ necessary — Rules of Court 2012, O 5 r 4, O 28 r 8 Evidence — Affidavit evidence — Conflicting factual assertions — Limits of determination without oral evidence — Documentary construction versus factual disputes Equity — Estoppel — Whether silence or conduct gives rise to estoppel — Requirement of clear and unequivocal representation — Whether party can approbate and reprobate Practice and procedure — Declaratory relief — Requirement of established legal right — Whether declaration may be granted absent concluded contract or clear termination Outcome — Originating summons dismissed — No binding mutual termination — No entitlement to refund or damages — Costs awarded to defendant

Practice Areas

Judges (1)

Parties (2)

Judgment

Read the full judgment on the official Malaysia Courts portal.

Read on eJudgment

Source: eJudgment (ma-24ncvc-399-09-2025)