Question
Jerry is the owner of ABC Renovation Sdn. Bhd. In the month of March 2021, he entered into contracts for three projects whereby the 1st
Jerry is the owner of ABC Renovation Sdn. Bhd. In the month of March 2021, he entered into contracts for three projects whereby the 1st Project in Teluk Intan was to renovate 10 shop lots. This is a subcontract from DEF Sdn. Bhd. which supplied ABC Renovation Sdn. Bhd. drawings, plans and specifications relating to the renovation works on the 10 shop lots. ABC Renovation Sdn. Bhd. commenced the renovation as per the specification but later found out that some of the information supplied by DEF Sdn. Bhd. is inaccurate which had led to ABC Renovation Sdn. Bhd. incurring an extra cost of RM50,000. When Jerry approached DEF Sdn. Bhd. for the payment for the additional RM50,000, DEF Sdn. Bhd. refused to make payment on the grounds that ABC Renovation has signed an agreement whereby one clause in the contract states that DEF Sdn. Bhd. would not be held responsible for any additional cost incurred. Due to financial constraint, Jerry instructed his workers to use inferior quality materials such as bricks and cement for his second project, which is a renovation of a house at Subang Jaya. Payment was agreed to be made upon completion. Once completed, Mr. Bakar who is the owner of the house took vacant possession and after a few days, Mr Bakar noticed various cracks and holes in the ceiling which later causes the ceiling to collapse. Mr. Bakar is angry and refuses to make payment and would like to repudiate the contract. The last project was for the renovation of Jerry's brothers-in-law's house. Jerry had renovated the house and now asked for payment but his brother-in-law refuses to make payment on the basis that they are family members.
Advice Jerry on all the legal issues under Contract Law.
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