RM480m suit against Defence Ministry

The High Court will deliver on July 9 its decision in a company's RM480 million suit against the gov't & 2 others for breach of contract to upgrade the Royal Malaysian Air Force's Northtrop F5 Tiger fighter jets.

The company, in its suit filed in 2005, said that it signed an agreement with the defendants on Jan 11,2001, witnessed by the then prime minister, Tun Dr Mahathir Mohd, for refurbishing work of the fighter jet. According to the agreement, the defendants would paid Rm4.8 million a year for a maximum of 10 years, totalling 48 million, to the company on completion of the refurbishing work.

The agreement also stated that in the event of a breach of agreement by the company, the defendants must issue a written notice and the contract could be terminated after 30 days.

The company said it carried out refurbishment of the fighter jets with CAS Ltd, a company appointed as sub-contractor and completd the job and ended the services of CAS Ltd on jan 26,2002, after it found the sub-contractor's commitment to the upgrading work unsatisfactory.

However, the plaintiff claimed that the defendants held private negotiations with CAS Ltd to continue the job without its knowledge and it was barred from entering the RMAF base.

It also claimed that on May 21,2002, it was announced that CAS Ltd had obtained approval from the defendants to continue the work.

The company claimed that it received the contract termination letter from the defendants on Sept 6,2002, to rescind the agreement on grounds that the plaintiff did not produce the implementation bond within 14 days from the date the contract was signed and had failed to send a flyable technology demonstrator unit before Oct 15, 200, as stated in the agreement.

The company is demanding RM48 million compensation for termination of contract; Rm432 million for loss of future contract; exemplary damages; interests, costs and other reliefs deemed fit by the court.

The defendants, in their statement of defence, said the company had failed to perform and that the contract was given to another party.

source: New Sarawak Tribune. june 12, 2010
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Come July 9, The Judgement Day ! Don't forget to follow up.

Court strikes out RM218 mln suit against Umno

The High Court struck out Elegant Advisory Sdn Bhd’s RM218 million suit against Umno over alleged non-payment for items the company claimed to have supplied during a general election.

Judicial Commissioner Anantham Kasinater, who made the decision in chambers, said the application was without basis and did not follow the Contracts Act 1950.

During the course of submissions, counsel for the plaintiff conceded that there was no written contract. Counsel was unable to highlight the terms of any oral contract.

The plaintiff, when required to provide particulars of the oral agreement to prove privity of contract, was unable to do so. In his 10-page written judgment, Anantham also said that the plaintiff’s claim was frivolous and vexatious.

In its writ of summons, Elegant Advisory said it was engaged in the supply of election merchandise, transportation and publications and that it had supplied Umno with these items for the 11th GE in 2004.

The company claimed that it had sent Umno invoices for a sum of RM218,013,475 and that the party has failed to pay up.

Anantham also said that Section 71 of the act was not founded on contract but embodied the equitable principle of restitution and unjust enrichment.

In our words, the section is applicable to relationship resembling those created by contract but not those based on contract.

The plaintiff would appeal against the decision.

Source: The Borneo Post dated September, 11, 2009.

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Hello Contractors,

Its high time Contractors know Contract Administration; administering contents of the terms and conditions of contract & managing the contracting parties relationship.( E.g Main Contractor & Subcontractors). Most Contractors ONLY ADMINISTER ACTIVITIES AND NOT CONTRACT. Additionally, Rights & Obligations, Roles & Responsibilities of each party are equally important of contract administration.

Let’s see what CA 1950 Section 71 says;

Obligation of person enjoying benefit of Non-Gratuitous Act

Where a person lawfully does anything for another person, or delivers anything to him, not intending to do so gratuitously, and such person enjoys the benefit thereof, the latter is bound to make compensation to the former in respect of, or to restore, the thing so done or delivered.

ILLUSTRATIONS

a) A, a tradesman, leaves goods at B’s house by mistake B treats the goods as his own. He is bound to pay A for them.

b) A saves B’s property from fire. A is not entitled to compensation from B, if the circumstances show that he intended to act gratuitously.

New English Word- “SEXTING”

In Houston, Texas, thousands of students are returning to school to discover a new rule: no ‘sexting’ – the distribution of nude or semi-nude photographs or videos by text message.

“They were reporting that it was an issue and may be becoming more of a problem,”.

A recent study by the National Campaign to Prevent Teen and Unplanned Pregnancy found 22 % of US teenager girls and 18% of teenager boys have sent messages or posted images or video online showing them nude or semi-nude.

“A student may be sending pictures to their boyfriend and they break up and he sends it to everybody,” said Graff.

Happy Merdeka Day

MAY I TAKE THIS OPPORTUNITY TO WISH ALL MALAYSIANS

HAPPY MERDEKA DAY

Couple who gave house to son now homeless

SIN Chew Daily reported that an elderly couple in Singapore who gave up their duplex to their son ended up homeless after they were chased out of the house by the ungrateful offspring.
The couple now call the staircase of a school their home.
The man, who was named as Lim, was a manager before he retired. He had a son and a daughter who lived in Jurong, Singapore.
Relating his ordeal to a secretary of the school, Lim said he and his wife decided to give their duplex home to their son as a wedding gift about two years ago.
The couple thought that they could live in the house with their son. He, however, decided to sell the property for RM960,000 to buy another condominium. Lim and his wife were then sent off to live with the daughter.
After a year, the daughter decided that they were no longer welcome and banned them from touching her children.
The couple could not enter the house after their daughter changed the locks to the house.
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I am not surprise with the headline. Nothing new and I come across similar stories whenever the issue of distribution of property, inherited fortune is mentioned. Some even drag their parents to court and face the wrath of court cases. I can understand the love parents are trying to show. If you ask me, I would only support my children till tertiary education & hoping they can land a good job and fence and able to look after themselves.

An epitome of lifelong learning

At 66, Gurcharam Kaur ( umh; I’m only 41 and maybe old enough to pursue a course) is now a proud degree holder after having had to put her dreams on hold to take care of her parents and help bring up three younger siblings. ( poor family background sometimes do help to improve oneself)

The former English teacher received her Bachelor’s Degree in Education ( Teaching English as a Second Language or TESL) at the 33rd UPM convocation ceremony. In June 2005, Gurcharam, who has 40 years of teaching experience under her belt, decided to further her studies at UPM.

Her decision followed encouragement from her siblings who became successful in their own right.

` I did not encounter any problems during my 4 years of long-distance learning at UPM….rather, I received excellent grades five times,” said Gurcharam who currently lives in Negri Sembilan.

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For those out there, it’s a perfect example of lifelong learning. One should embrace CHANGE! Lifelong learning its an opportunity for the mass population to obtain quality tertiary education via open learning concept at affordable costs. It would also enlightened ones future.

For directors of company, its time to promote a lifelong learning culture in your organization. KNOWLEDGE IS POWER. It would certainty benefit the company in terms of creating a knowledgeable employees that would bring the company to greater heights and enhance its competitiveness in their relevant sector. Its an arduous task though but its definitely not an inane idea; maybe to others yes but the choice is your to determine your own future.

To be successful, 99% depends on hardwork and 1% luck

Papa & Mama

Maria is a beautiful Samoan girl fell in love with Sione. She planned to marry very soon.

She was so happy about her wedding plans, she decided to tell her papa. Papa told her, "Maria, you'll have to find another.Your Mother does not know this, but Sione is your half-brother, my son to another woman".

So Maria forgot about her Sione, and soon planned to marry Manu .But after telling papa again, he said, "Maria there's trouble still. You cannot marry Manu, my darling. Please don't tell your mother, but Manu is your half-brother too, my other son to another woman."

Maria had no choice but to go to her mama. Mama already knew and said "Don't worry darling, do what makes you happy. Marry Manu or marry Sione, because you are not related to Papa."