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(iii) On 1 January 2020, Margenta Bhd entered into a contract to build a two-storey bungalow for Dato' Tan, a well-established businessman, for a
(iii) On 1 January 2020, Margenta Bhd entered into a contract to build a two-storey bungalow for Dato' Tan, a well-established businessman, for a contract sum of RM3 million within 24 months from the agreement date. The bungalow is a birthday gift to Dato' Tan's wife, Datin Ling. Margenta Bhd cannot transfer the bungalow to another client and Dato' Tan, on the other hand, cannot terminate the contract. Upon default by Dato' Tan before completion of the bungalow, Margenta Bhd is entitled to all contractual prices if it decides to complete the contract. The schedule of progress payment and cost estimation are as follows: Stage Percentage (%) Amount due Cost (RM) (RM) Signing of contract 10 300,000 Land works and piling 20 600,000 495,000 Flooring, walls and roofing Wiring, plumbing and door frame 10 Road and drainage Upon production of Certificate of 2002 20 600,000 495,000 300,000 247,500 10 300,000 253,125 20 600,000 506,250 Compliance and Completion Vacant possession Total 10 300,000 253,125 100 3,000,000 2,250,000
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