Question

Syarikat Bahan Bina Sdn. Bhd. (SBBSB) has made an agreement with Mr. Sany who obtained a contract from the Kuala Krai District Council (MDKK) for the construction of drainage. SBBSB agreed to supply building materials to Mr Sany on credit. However MDKK has canceled the contract with Mr Sany as he does not have a skilled workforce. Mr Sany has sold building materials supplied by SBBSB to Mr Low. SBBSB demanded that Mr Low return the building materials or pay the price to them. Mr Low is determined not to return or pay the price of the building materials to SBBSB as he has already paid in cash to Mr Sany. Advise Mr. Low by analyzing his legal position by providing relevant sections, cases and legal maxims

Answer 1

Mr. Sany had procured the building materials on credit from SBBSB and sold it to Mr. Low. Mr. Low had paid for the materials completely. He did not have any idea about how SBBSB had procured the items and whether it was paid fully or partially. As Mr. Sany was not the original owner of the building material, the contract signed between Mr. Low and Mr. Sany stands voidable. Mr. Low will be required to return the material to Mr. Sany and Mr. Sany will be required to payback to Mr. low. If Mr. Low states that he may have suffered damages because of the cancellation of the contract, then Mr. Sany will be required to compensate Mr. Low for the damages as well. Mr. Low does not have any answerability to SBBSB. SBBSB will be required to negotiate with Mr. Sany and not disturb Mr. Low at any cost as that will be considered invalid.