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Yeoh Theam Poh & Anor v Bench Win Sdn Bhd & Anor and other suits [2013] 8 MLJ
Fact of the case
The plaintiffs in the three suits occupied a dwelling(‘the premises’) built on state land that was built by the plaintiff’s father who was given the temporary occupying licence(TOL). The father still dwelling on the premises after the TOL had been cancelled without permission and approval from the state. The first defendant (Bench Win), a housing developer wanted to built an access to the housing project on the premises occupied by the plaintiffs. The compensation agreement was entered between them in separate that in return for the plaintiffs vacant the premises, the second defendant (Archlaw Development) would give them one free and two price-discounted apartments in housing project. The plaintiffs vacated the premises but Bench Win notified the plaintiffs that it was rescinding the compensation agreement as the housing project cannot be implemented for some reason. The plaintiffs filed the instant suits to declare that their compensation agreements with Bench Win and their sale and purchase agreement (SPAs) with Archlaw Development were valid and subsisting. They also sought an order that the SPAs be specifically performed and that they be awarded damages and costs. Bench Win, which only later discovered that the plaintiffs were squatters, pleaded that the consideration for the compensation agreement was illegal and the contract were void.
Issues
Whether the contact void and unenforceable? Whether plaintiffs use of premises as consideration for contract unlawful?
Decision
The court dismissing the claims with costs.The compensation agreement between the plaintiffs and Bench Win were void and unenforceable on the ground of illegality. Since the SPAs were consideration for the compensation were void, the SPAs were thus ineffective and unenforceable. The

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