1

2
Malayan Law Journal Reports/1970/Volume 1/CHIN KIM & N!R " L!H #!!N $I%& ' (1970) 1
MLJ 197 ' 9 *e+em,er 19-9
2 pa.es
(1970) 1 MLJ 197
CHIN KIM & ANOR v LOH BOON SIEW
FEDERAL COURT KUALA LUMPUR
ONG CJ (MALAYA), GILL & ALI FJJ
CIIL APPEAL NO !"# OF 19$9
9 D%&%'(%) 19$9
Contract -- Repudiation by one party to a contract -- Effect of -- Option of other party -- Delay in
exercising rights under contract -- Inference of acquiescence in repudiation -- Claim for specific
performance cannot succeed -- Contracts (Malay tates! Ordinance" #$%&" s '&
/0e part1es 0a2 entere2 1nto a +ontra+t 3or sale o3 lan2 1n Kuala Lumpur on May 1-4 19-15 !ne o3
t0e +on21t1ons o3 t0e +ontra+t was t0at on payment ,y t0e pur+0aser o3 t0e sum o3 6704000 t0e
"en2ors un2ertoo8 to ta8e steps to apply to t0e Rent ssessment #oar2 3or perm1ss1on to e"1+t
t0e tenants on t0e lan25 It was also pro"12e2 t0at 13 t0e "en2ors were una,le to .1"e "a+ant
possess1on o3 t0e lan2 t0ey woul2 re3un2 t0e sum o3 6704000 to t0e pur+0aser5 /0e pur+0aser on
May 94 19-2 purporte2 to e:er+1se 01s opt1on un2er t0e +ontra+t o3 sale an2 sent 6704000 to t0e
"en2ors5 $u,se;uently on or a,out June <4 19-2 t0e 2epos1t was returne2 ,y t0e "en2ors on t0e
.roun2 t0at t0e opt1on 0a2 not ,een 2uly e:er+1se25 /0e pur+0aser too8 no 3urt0er steps unt1l t0e
wr1t 1n t0e a+t1on was 1ssue2 on u.ust 294 19--4 1n w01+0 0e +la1me2 spe+131+ per3orman+e o3 t0e
+ontra+t5 /0e H1.0 Court 0a"1n. or2ere2 spe+131+ per3orman+e4 t0e "en2ors appeale25
H%*+, allow1n. t0e appeal= 1n t01s +ase on repu21at1on o3 t0e +ontra+t ,y t0e "en2ors t0e
pur+0aser s0oul2 0a"e ma2e 01s pos1t1on +lear as to w0et0er 0e a++epte2 t0e repu21at1on or
re3use2 to a++ept 1t> 1n "1ew o3 t0e 2elay o3 t0e pur+0aser4 t0e proper 1n3eren+e was t0at 0e 0a2
a++epte2 t0e res+1ss1on5 In t0e +1r+umstan+es 0e was not ent1tle2 to spe+131+ per3orman+e5
C,-%- )%.%))%+ /0
(hite ) Carter (Councils! *td + Mc,regor (19-2) C 71? 727
-rost + .night LR 7 %: 111 112
FEDERAL COURT

RR Chelliah 3or t0e appellants5
/g E0 1eong 3or t0e respon2ent5
ONG CJ
?
/01s 1s an appeal a.a1nst t0e 2e+1s1on o3 t0e H1.0 Court at Kuala Lumpur .1"en on June 194 19-9
or2er1n. spe+131+ per3orman+e ,y t0e "en2ors o3 an a.reement 2ate2 May 1-4 19-1 3or t0e sale o3
lan25
&on. C0oon. an2 C01n K1m4 01s w13e4 were t0e re.1stere2 +o'owners 1n e;ual s0ares o3 a p1e+e
o3 lan2 at /rea+0er Roa2 1n t0e res12ent1al @one o3 Kuala Lumpur5 Lo0 #oon $1ew was 1n sear+0
o3 a su1ta,le pla+e 3or 01s motor'+ar s0owrooms5 !n May 1-4 19-1 t0ey entere2 1nto an
a.reement 3or t0e sale an2 pur+0ase o3 t01s lan2 at t0e pr1+e o3 61-04000 or appro:1mately 67 per
s;uare 3oot5 $1tuate on t0e lan2 were t0e "en2orsA 3am1ly res12en+e an2 some out'0ouses let to
tenants prote+te2 un2er t0e Control o3 Rent !r21nan+e 199- t0en 1n 3or+e5 s t0e lan2 was
re;u1re2 ,y t0e pur+0asers 3or +ommer+1al purposes4 t0e a.reement +onta1ne2 +erta1n
st1pulat1ons relat1n. to plann1n. perm1ss1on to ,e appl1e2 3or an2 pro+ee21n.s ta8en ,y t0e
"en2ors t0erea3ter 3or eBe+tment o3 t0e1r tenants so as to ,e a,le to .1"e t0e pur+0aser "a+ant
possess1on5
#r1e3ly4 t0e a.reement was as 3ollows5 In +ons12erat1on o3 614200 pa12 to t0em ,y t0e pur+0aser
t0e "en2ors .rante2 01m an opt1on o3 pur+0ase at t0e pr1+e o3 61-04000 to ,e e:er+1se2 w1t01n -
mont0s5 *ur1n. su+0 per1o2 t0e pur+0aser was to supply plans 3or su,m1ss1on ,y t0e "en2ors to
t0e aut0or1t1es 3or plann1n. perm1ss1on5 Cpon re+e1pt o3 su+0 perm1ss1on t0e pur+0aser was to pay
t0e "en2ors 3ort0w1t0 t0e sum o3 6704000 ,y way o3 2epos1t to a++ount o3 t0e pur+0ase pr1+e an2
t0e ,alan+e o3 61204000 w1t01n - mont0s t0erea3ter> ,ut4 1n t0e e"ent o3 perm1ss1on ,e1n. re3use24
t0e opt1on was to ,e automat1+ally e:ten2e2 3or a 3urt0er - mont0s4 so t0at t0e e:p1ry 2ate
,e+ame 12 mont0s 3rom May 1-4 19-15 In t0e e"ent plann1n.
#$2& # M*3 #$2 at #$4
perm1ss1on was not 3ort0+om1n. an2 t0e opt1on ,e+ame e:ten2e2 a++or21n.ly5
/0e a.reement went on to pro"12e 3or t0e +ont1n.en+y w0ere4 1n 2e3ault o3 plann1n. perm1ss1on4
t0e pur+0aser was st1ll 2es1rous to +omplete an2 pa12 t0e a.ree2 2epos1t5 /0e rele"ant pro"1s1ons
were as 3ollows='
D75 Imme21ately on re+e1pt o3 t0e sum o3 2ollars 3orty t0ousan2 E6704000F only4 t0e "en2ors 0ere,y
un2erta8e to ta8e su+0 steps as may ,e 2eeme2 ne+essary 1n+lu21n. le.al pro+ee21n.s to e"1+t t0e1r
tenants on t0e sa12 lan2 an2 s0all 1mme21ately apply to t0e Gres12ent or C0a1rman o3 t0e Rent
ssessment #oar2 3or a +ert131+ate t0at t0e Rent ssessment #oar2 1s sat1s31e2 t0at t0e owners o3 t0e
sa12 lan2 1nten2 to 2emol1s0 all ,u1l21n.s on t0e sa12 lan2 3or t0e purpose o3 re,u1l21n. an2 1n 1ts op1n1on
1t 1s 1n t0e pu,l1+ 1nterest t0at t0ey s0oul2 ,e perm1tte2 to 2o so5 ll +osts an2 e:penses 1n t01s +onne+t1on
s0all ,e ,orne ,y t0e "en2ors5
<5 I34 w1t01n s1: E-F mont0s 3rom t0e 2ate o3 t0e sa12 2epos1t t0e "en2ors are una,le to .1"e "a+ant
possess1on o3 t0e sa12 lan24 t0e pur+0aser or t0e nom1nee 0as t0e e:+lus1"e r1.0t to term1nate t0e
a.reement an2 t0e "en2ors s0all 1mme21ately re3un2 to t0e pur+0aser or nom1nee t0e sum o3 2ollars 3orty
t0ousan2 E6704000F 3ree o3 1nterest an2 t01s a.reement s0all ,e null an2 "o125
1?5 /1me w0ere"er ment1one2 1n t01s a.reement s0all ,e t0e essen+e o3 t01s +ontra+t5D
!n May 94 19-2 ' 10 2ays ,e3ore t0e e:ten2e2 e:p1ry 2ate ' t0e pur+0aser purporte2 to e:er+1se
01s opt1on ,y rem1tt1n. 3rom Genan. 6704000 ,y +0e;ue to t0e sol1+1tor 1n Kuala Lumpur w0o was
a+t1n. 3or ,ot0 part1es5 In t0e meant1me &on. C0oon. 0a2 met an unt1mely 2eat0 on May 94
19-24 0a"1n. appo1nte2 t0e Gu,l1+ /rustee e:e+utor o3 01s w1ll5 /0e latter a++epte2 t0e
appo1ntment an2 on or a,out June <4 19-2 ,ot0 0e an2 t0e w12ow returne2 t0e1r respe+t1"e
s0ares o3 t0e 6704000 sent to t0em ,y +0e;ue4 on t0e .roun2 t0at t0e opt1on 0a2 not ,een D2uly
e:er+1se2D5 /0erea3ter t0ere was no 3urt0er +orrespon2en+e ,etween t0e part1es4 or any
1nt1mat1on .1"en ,y t0e pur+0aser as to 01s 1ntent1ons re.ar21n. t0e property unt1l wr1t 1n t01s a+t1on
was 1ssue2 1n t0e H1.0 Court on u.ust 294 19--5
#y t0e1r 2e3en+e t0e "en2ors plea2e2 1lle.al1ty 1n t0at t0ey were re;u1re2 ,y t0e a.reement to
ma8e 3alse representat1ons to t0e Rent ssessment #oar2> 2e3ault on t0e part o3 t0e pur+0aser to
7
e:er+1se t0e opt1on 1n str1+t +ompl1an+e w1t0 t0e terms o3 t0e a.reement an2 t0at4 t1me ,e1n. o3
t0e essen+e o3 t0e +ontra+t4 2elay on 01s part 21sent1tle2 t0e pur+0aser to spe+131+ per3orman+e5
!n t0e 31rst .roun2 t0e learne2 tr1al Bu2.e 0el2 t0at4 ,y reason o3 t0e pur+0aser 0a"1n. wa1"e2 t0e
re;u1rement o3 "a+ant possess1on4 t0e "en2ors were no lon.er un2er any o,l1.at1on to apply to
t0e Rent ssessment #oar2 or 2o anyt01n. +ontrary to law 1n +onne+t1on t0erew1t05 He 0el2
3urt0er t0at t0e ten2er o3 6704000 ,e3ore t0e e:p1ry o3 t0e opt1on was 1n e33e+t a "al12 e:er+1se o3
t0e opt1on an2 t0at t0e pur+0aserAs 2elay ' alt0ou.0 last1n. well o"er 3our years ,e3ore
+ommen+ement o3 a+t1on ' 212 not 2e3eat 01s +la1m4 as t1me was not o3 t0e essen+e o3 t0e +ontra+t
e:+ept 1n only one part1+ular4 namely4 t0e 1n1t1al 2epos1t o3 67040005
&1t0 respe+t4 I t01n8 t0e Bu2.ment pro+ee2e2 upon a m1sappre0ens1on o3 w0at really were t0e
mater1al 3a+ts5 /0e "en2orsA re3usal o3 t0e 2epos1t on June <4 19-2 was +ouple2 w1t0 an
une;u1"o+al repu21at1on o3 t0e a.reement5 /0at le3t two +ourses open to t0e pur+0aser ' e1t0er to
a.ree to res+1ss1on o3 t0e a.reement or treat t0e repu21at1on as Dwr1t 1n waterD5 /01s 1s +learly la12
2own 1n se+t1on 70 o3 t0e l.1Contra+ts EMalay $tatesF !r21nan+e 1990 as 3ollows='
D&0en a party to a +ontra+t 0as re3use2 to per3orm4 or 21sa,le2 01msel3 3rom per3orm1n.4 01s prom1se 1n
1ts ent1rety4 t0e prom1see may put an en2 to t0e +ontra+t4 unless 0e 0as s1.n131e24 ,y wor2s or +on2u+t4
01s a+;u1esen+e 1n 1ts +ont1nuan+e5D
/0e e33e+t o3 a repu21at1on ,y one party to a +ontra+t 1s t0us state2 ,y Lor2 Re12 1n (hite )
Carter (Councils! *td + Mc,regor (19-2) C 71? 727='
D/0e .eneral rule +annot ,e 1n 2ou,t5 It was settle2 1n $+otlan2 at least as early as 1<7< an2 1t 0as ,een
aut0or1tat1"ely state2 t1me an2 a.a1n 1n ,ot0 $+otlan2 an2 %n.lan25 I3 one party to a +ontra+t repu21ates 1t
1n t0e sense o3 ma81n. 1t +lear to t0e ot0er party t0at 0e re3uses or w1ll re3use to +arry out 01s part o3 t0e
+ontra+t4 t0e ot0er party4 t0e 1nno+ent party4 0as an opt1on5 He may a++ept t0at repu21at1on an2 sue 3or
2ama.es 3or ,rea+0 o3 +ontra+t4 w0et0er or not t0e t1me 3or per3orman+e 0as +ome> or 0e may 13 0e
+0ooses 21sre.ar2 or re3use to a++ept 1t an2 t0en t0e +ontra+t rema1ns 1n 3ull e33e+t5D
&0ere t0e prom1see 2oes not a++ept t0e repu21at1on as putt1n. an en2 to t0e +ontra+t t0e le.al
pos1t1on o3 t0e part1es t0en 1s as state2 ,y Co+8,urn C5J5 1n -rost + .night LR 7 %: 111 112='
D/0e prom1see4 13 0e pleases4 may treat t0e not1+e o3 1ntent1on as 1noperat1"e4 an2 awa1t t0e t1me w0en
t0e +ontra+t 1s to ,e e:e+ute24 an2 t0en 0ol2 t0e ot0er party respons1,le 3or all t0e +onse;uen+es o3 non'
per3orman+e= ,ut 1n t0at +ase 0e 8eeps t0e +ontra+t al1"e 3or t0e ,ene31t o3 t0e ot0er party as well as 01s
own> 0e rema1ns su,Be+t to all 01s own o,l1.at1ons an2 l1a,1l1t1es un2er 1t4 an2 ena,les t0e ot0er party not
only to +omplete t0e +ontra+t4 13 so a2"1se24 notw1t0stan21n. 01s pre"1ous repu21at1on o3 1t4 ,ut also to ta8e
a2"anta.e o3 any super"en1n. +1r+umstan+e w01+0 woul2 Bust13y 01m 1n 2e+l1n1n. to +omplete 1tD5
/0e pos1t1on o3 t0e pur+0aser 1n t0e 1nstant +ase 1s t0us state2 1n -ry on $pe+131+ Ger3orman+e
E-t0 %25F p5 919 as 3ollows='
D&0ere t0e +ontra+t 1s 1n anyw1se un1lateral4 as4 3or 1nstan+e4 1n t0e +ase o3 an opt1on to pur+0ase4 a r1.0t
o3 renewal4 or o3 any ot0er +on21t1on 1n 3a"our o3 one party an2 not o3 t0e ot0er4 t0en any 2elay o3 t0e
party 1n w0ose 3a"our t0e +ontra+t 1s ,1n21n. 1s loo8e2 at w1t0 espe+1al str1+tness5 !n t01s pr1n+1ple4 t0e
2elay o3 a pur+0aser 1n 2e+121n. w0et0er 0e w1ll or w1ll not a++ept t0e t1tle 1s an 1nBust1+e4 ,e+ause t0e
pur+0aser +an en3or+e t0e +ontra+t a.a1nst t0e "en2or w0et0er t0e t1tle ,e .oo2 or ,a24 w0ereas t0e
"en2or +an only 2o so 1n +ase o3 a .oo2 t1tle5D
In t01s +ase one s0oul2 0a"e t0ou.0t t0at t0e pur+0aser woul2 not 0es1tate to ma8e 01s pos1t1on
+lear one way or t0e ot0er5 Het 0e 212 not01n. o3 t0e sort5 I3 0e 21sa.ree2 t0at t0e "en2ors were
on't1tle2 to repu21ate4 0e 0a2 only to say so5 Ha2 0e ,een at all 2es1rous o3 +omplet1n. t0e
pur+0ase ' e"en w1t0out "a+ant possess1on ' all 0e 0a2 to 2o was per3e+tly s1mple4 namely4 .1"e
not1+e to t0e "en2ors o3 01s 1ntent1on so to 2o an2 ten2er t0e w0ole pur+0ase pr1+e5 &0at else
were t0e "en2ors reasona,ly to assume ,y reason o3 01s +omplete s1len+e e:+ept t0at 0e
#$2& # M*3 #$2 at #$$
9
a+;u1es+e2 1n t0e1r tear1n. up t0e a.reementI &0at was t0e proper 1n3eren+e t0e +ourt s0oul2
0a"e 2rawn 3rom 01s +on2u+tI $0oul2 not 0e4 as a reasona,le man4 0a"e ta8en a+t1on w1t01n a
reasona,le t1me a3ter a ,rea+0 o3 +ontra+t ,y t0e ot0er party4 unless 0e 1n 3a+t a+;u1es+e2 1n 1ts
res+1ss1onI In my op1n1on a lapse o3 o"er 3our years ' ,etween June <4 19-2 an2 u.ust 294 19--
' 1s not e"en w1t01n measura,le 21stan+e o3 t0e reasona,le t1me 0e nee2e2 to ma8e up 01s m1n25
H1s +on2u+t t0ere3ore +ompels me to +on+lu2e t0at 0e a++epte2 t0e res+1ss1on5 Ha"1n. so a.ree2
I +annot see 0ow 0e 1s ent1tle2 e"en to 2ama.es4 mu+0 less spe+131+ per3orman+e5
Here t0e pur+0aser 0a2 ,een solely respons1,le 3or a most 1nor21nate 2elay5 No sat1s3a+tory
e:planat1on 0a2 ,een .1"en to a++ount 3or 1t5 $u+0 2elay 0a2 1n 3a+t resulte2 1n ,ene31ts w01+0
were ent1rely one's12e25 He 0a2 1n t0e meant1me t0e pro31ta,le use o3 01s money4 t0e w0ole sum
o3 61-040004 w01+0 s0oul2 0a"e earne2 1nterest amount1n. to 6?<4700 1n 7 years at - per +ent 13
re+8one2 to t0e 2ate o3 t0e wr1t4 an2 appro:1mately 6-74200 w0en Bu2.ment was 31nally 2el1"ere2
1n t0e a+t1on5 /01s not 1n+ons12era,le sum was lost to t0e "en2ors5 Ha2 t0e pr1+e ,een ten2ere2
at t0e proper t1me an2 a++epte24 t0e 1nterest t0at s0oul2 0a"e ,een earne2 woul2 0a"e ,een a
.a1n to t0e "en2ors5 lternat1"ely t0e moneys m1.0t 0a"e ,een 1n"este2 1n ot0er lan2s at t0e
+urrent mar8et "alue 1n 19-2 w01+0 woul2 0a"e ma2e up 3or t0e ,a2 ,ar.a1n w01+0 t0e "en2ors
ma2e 1n 19-15 It 1s +ommon 8nowle2.e t0at lan2 "alues 1n Kuala Lumpur 0a2 ,een stea21ly r1s1n.
s1n+e 19-1 to t0e present 2ay5
Jor t0e a,o"e reasons t01s appeal s0oul2 ,e allowe2 an2 t0e Bu2.ment o3 t0e +ourt ,elow set
as12e w1t0 +osts5
G1** an2 A*1 F2JJ2 +on+urre25
5ppeal allo6ed7
$ol1+1tors= RR Chelliah 8ros9 /g E0 1eong ) :artners5