Whether the late delivery of vacant possession and the late completion of the common facilities were caused by force 25 majeure. 9 [18] The defendant contended that the delay was due to dispute with its 5 main contractor, the escalation of cost of raw materials, the escalation of finance charges and the rectification works by previous contractors. The defendant submitted that the above problems are not within its control and therefore they constitute force majeure. Because of this, the defendant contended that the completion time must be extended so that the 10 defendant can avoid paying the LAD. The defendant further submitted that the force majeure is an implied term of the SPA. The defendant, in trying to convince the Court that the delay was caused by force majeure, adduced an affidavit affirmed by the Senior Manager (Credit Control) himself, Mr Syed Mahadi Al Jafree bin Syed Mustafa (see ‘Afidavit Jawapan 15 Defendan’). The defendant, in support of the position that its take, also relies on Malaysia Land Properties Sdn Bhd v Tan Peng Foo [2013] 3 CLJ 663 , Liau Fung Kiong & Ors v Tinagat Properties Sdn Bhd [2010] MLJU 1480 and the case of Sababumi (Sandakan) Sdn Bhd v Datuk Yap Pak Leong [1998] 3 MLJ 151. 20 [19] With respect, this Court is unable to accept the defendant’s argument. Instead, this Court is in agreement with the plaintiff that the force majeure clause only applicable if the clause is provided for in the SPA. When a party refers to force majeure it essentially refers to the contractual terms that the parties have agreed upon to deal with situations that might 25 arise, over which the parties have little or no control, that might impede or obstruct performance of the contract. See Magenta Resources (S) Pte Ltd v China Resources (S) Pte Ltd [1996] 3 SLR 62 where Justice Rajendran opined: 10 “What is referred to as force majeure in our law (as opposed to French law 5 from which that term originates) is really no more that a convenient way of referring to contractual terms that the parties have agreed upon to deal with situations that might arise, over which the parties have little or no control, that might impede or obstruct performance of the contract. There can therefore be no general rule as to what constitutes a situation of force 10 majeure. Whether such a (force majeure) situation arises, and, where it does arise, the rights and obligations that follow, would all depend on what the parties, in their contract, have provided for.” [20] The relevant statutory provision regulating and controlling the activity of the defendant is regulation 11(1) of the Housing Developers (Control and 15 Licensing) Regulations 1989 enacted pursuant to the Minister’s powers under s 24 of the Housing Developers (Control and Licensing) Act 1966. For ease of reference, regulation 11(1) is reproduced below: “Every contract of sale for the sale and purchase of a housing accommodation together with the subdivisional portion of land appurtenant 20 thereto shall be in the form prescribed in Schedule G and where the contract of sale is for the sale and purchase of a housing accommodation in a subdivided building, in the form of a parcel of a building or land intended for subdivision into parcels, as the case may be, it shall be in the form prescribed in Schedule H.” 25 [21] It is pertinent to observe that the SPA is a Schedule H agreement provided pursuant to Regulation 11(1) of the Housing Development (Control and Licensing) Regulations 1989. The Housing Development (Control and Licensing) Act 1966 makes it mandatory for the defendant to use the same without addition or modification. The decision in Encony 30 Development Sdn Bhd v Robert Geoffrey Gooch & Anor [2016] 1 CLJ 893 serves as a good guide here. In that case, the Court of Appeal held: 11 “The SPA between the respondents and the appellant, who is a housing 5 developer, is governed by a statutory form of contract as prescribed in sch. H of the Housing Development (Control and Licensing) Regulations 1989 [PU(A) 58/1989] (‘the regulations’). As such, the provisions in the SPA are not merely contractual, but are in effect statutory provisions, as they are actually provision of sch. H of the Regulations. Which have been imposed 10 by law upon the parties. …. The SPA, which has statutory force, cannot, in other words, be effectively amended of varied by inferring the existence of a collateral contract subsisting alongside it.” [22] In the case of Sea Housing Corporation Sdn Bhd V Lee Poh Choo 15 [1982] 2 MLJ 31, the Federal Court had the occasion to decide whether the developer can add the force majeure clause. The Federal Court held: “As to the rules which govern the transaction between the parties, rule 12 is relevant. That rule provides that every contract of sale - such as the one here - shall be in writing and shall contain within its terms and conditions provisions to 20 the effect set out in the various paragraphs of that rule. Paragraph (o) is relevant; that says that the agreement must specify: "the date of delivery of the vacant possession of the housing accommodation to the purchaser which date shall not be later than 18 months after the signing of the contract of sale." 25 That, as we have seen, was done. Then there is paragraph (r) which provides that the agreement must contain: "provisions binding on the licensed housing developer that he shall indemnify the purchaser for any delay in the delivery of the vacant possession of the housing accommodation. The amount of indemnity 30 shall be calculated from day to day at the rate of not less than eight per cent per annum of the purchase price commencing immediately 12 after the date of delivery of vacant possession as specified in the 5 contract of sale." That too was done, as we have seen. But then the developer says, as we have seen, that it is excused from liability by clause 32 of the agreement which reads: "The vendor shall not be liable to purchaser for any failure to fulfil 10 any terms of this Agreement if such fulfilment is delayed, hindered or prevented by force majeure including but not limited to acts of God strikes lockouts riots civil commotion acts of war or the disability of contractors and subcontractors employed by the vendor either commencing, carrying on or completing their work or failure to obtain 15 any necessary sanction or approval of any local authority or any other circumstances of whatsoever nature beyond the control of the vendor." It is said here that owing to the then building boom and resultant shortage of building materials and labour which was beyond the control of the developer it 20 is not liable because of this clause 32. With great respect to Mr. Chelliah for the developer we do not agree that it is open to the developer to escape liability by inserting clause 32 in the agreement. 25 It is common knowledge that in recent years, especially when government started giving housing loans making it possible for public servants to borrow money at 4% interest per annum to buy homes, there was an upsurge in demand for housing, and that to protect home buyers, most of whom are people of modest means, from rich and powerful developers, Parliament found 30 it necessary to regulate the sale of houses and protect buyers by enacting the Act. That was why rule 12 was enacted and in particular paragraphs (o) and (r) thereof. With respect we do not agree with Mr. Chelliah that it was open to a 13 developer to get round these paragraphs by the inclusion of such a clause as 5 clause 32 in this agreement. In Daiman Development Sdn Bhd v Mathew Lui Chin Teck [1978] 2 MLJ 239 we said at page 243 that developers are bound by the rules and if an agreement of sale is subject to contract, "only details may be inserted into the further agreement." 10 Mr. Chelliah argued that clause 32 is such a detail. With respect we do not agree. In our judgment such details as are inserted into a written agreement must be details consistent, not inconsistent with the Act and rules. Clause 32 is inconsistent with paragraph (r) of rule 12(1). When Daiman went to the [1981] 1 MLJ 56 their Lordships observed at page 15 60, second column: "... it seems to their Lordships that upon the proper construction of the proforma [used in that case] the solicitors [for the developer there] would not be able to include in the contract of sale any term or condition which was not appropriate to effectuate the sale which had 20 been made, including for that purpose, of course, provisions to comply with the requirements of the rules." Thus it is clear that only terms and conditions designed to comply with the requirements of the rules that may be inserted in a contract of sale of land that is governed by the Act and rules, and that on the contrary terms and conditions 25 which purport to get round the Act and rules so as to remove the protection of home buyers may not be so inserted. With respect, the provisions in question here are similar to those in Johnson v Moreton [1978] 3 All ER 37, a House of Lords decision, where at page 49 Lord Hailsham said: 30 "The policy of the law has been repeatedly used to protect the weaker of two parties who do not contract from bargaining positions of equal strength. (line a). 14 The truth is that it can no longer be treated as axiomatic that, in the 5 absence of explicit language, the courts will permit contracting out of the provisions of an Act of Parliament -- as was attempted here -- where that Act, though silent as to the possibility of contracting out, nevertheless is manifestly passed for the protection of a class of persons who do not negotiate from a position of equal strength, but 10 in whose well-being there is a public as well as a private interest." (lined onwards). It would appear that only "contracting out" in favour of the weaker party -- i.e. the purchaser -- might be countenanced by the courts. The construction we place on the rules is not as harsh as it seems to a 15 developer -- for he has a safeguard in subrule (2) of rule 12 which provides: "Notwithstanding the provisions of paragraph (1) of this Rule, where the Controller [of Housing] is satisfied that owing to special circumstances the compliance with any provisions of this Rule is impracticable or unnecessary he may by a certificate in writing waive 20 or modify such provisions in respect of any contract of sale." Thus in the circumstances of this case it would have been open to the developer to try and persuade the Controller to modify the rigours of paragraphs (o) and (r) of rule 12(1). If it had succeeded it would have escaped liability. But it made no attempt to do so. 25 But Mr. Chelliah says that under the terms of rule 12(2) the developer could have done so only before a contract of sale had been finalized and not after. With respect we do not agree; in our judgment it is open to a developer to take advantage of this provision after as well as before such a contract has been finalized. 30 For the reasons given above, we are of the opinion that clause 32, being inconsistent with rule 12 and not designed to comply with the requirements of the rules and in the absence of waiver or modification by the Controller of 15 Housing under rule 12(2), is void, and that therefore the developer is liable in 5 damages for the delay in completion.” [23] Applying the proposition of law as explained above, this Court opined that the defendant could not use those incidents to escape from its obligation under the SPA. This Court will not imply terms that contradict any express terms of the SPA. Therefore, the issue of force majeure cannot be 10 a triable issue in this present case.