Question
Q 1. There was a plan by the Government of Malaysia for a bridge to replace the existing Johore-Singapore causeway (hereinafter referred to as the
Q 1.There was a plan by the Government of Malaysia for a bridge to replace the existing Johore-Singapore causeway (hereinafter referred to as the bridge project), and that the Economic Planning Unit of the Prime Minister's Department have opened the tender for the bridge. Ali Baba Sdn. Bhd ("the company") is one of the company interested to have the project as the return of the investment in the project is almost 100%.
Datuk Ali who is the owner of the company meet Dato Abu who is representing himself have some connection with the person incharge in the bridge project. Dato Abu offers services to influence the person incharge of the bridge project to award the project to the company. Pursuant to several negotiations, the company engage Dato Abu to render his services to procure and secure the project in favour of the company and by Letter of Undertaking dated 3rd July 2019 (the LOU) the company hereby undertakes and agrees to pay Dato Abu the sum of RM10,000,000.00 (Ten Million) being the agreedrenumeration to Dato Abu.
Dato Abu had paid RM500,000.00 as the initial payment to several people who he believe persons incharge of the project approval. The company succeed to get the project and the Letter of Award signed on 3rd August 2019. However for several reasons, the government terminate the Letter of Award on 3rd October 2019 and prepare to pay RM10,000,000.00 (Ten Million) being the compensation for the termination of the project.
Datuk Ali agree to the termination and received the compensation amount but refuse to
to pay Dato Abu event for a single cent for the reason that he agree to pay if his company
succeed to get the project only but now the project was terminated.
Advise Dato Abu as Plaintifand Datuk Ali as Defendant based on the provisions of
Contract Act and case law.
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