Mujib owns a parcel of land in Klang. He plans to have a house built on the land. On 01 January 2020 he entered into an agreement with a company called SK Bros. (SK), to build a house on his land. They agreed that the cost shall be RM500,000. It was a term of the agreement that SK will complete construction and deliver the house to Mujib on or before 31 December 2020. They further agreed that should SK fail to complete and deliver the house to Mujib within the agreed time, SK would pay liquidated damages calculated on a daily basis at the rate of 10% per annum of the cost of construction for any delay in completion. The agreement further provided that time wherever mentioned shall be of the essence of the agreement.

SK were unable to complete construction of the house within the stipulated date. However, despite the delay the parties had a few meetings during which SK kept Mujib informed of the progress of the construction and Mujib, meanwhile paid the balance of the construction cost to SK. There has now been a delay of 3 months. Mujib intends to terminate the agreement with SK.

Advise Mujib of his rights under the law of contract.