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Note: In order to purchase printing equipment, which was to be leased to Ultimate Eight Sdn Bhd & Ors (Lessee), Amfinance Bhd (Lessor) applied for a letter of credit for which Lessee advanced the fees. Due to irregularities in signing the application, a new set of documents had to be submitted, delaying the issuance of the LC by one and a half months and causing loss to Lessee. When Lessee defaulted on the loan, Lessor sued Lessee and its guarantors for damages. The Court of Appeal (Putrajaya), Ali, Kwai and Wah, J.J., reversed the High Court in Malaya's dismissal of Lessor's claim.

While the appellate court recognized that Lessee had suffered damages, it notedthat there was no bad faith in the delay, that Lessee and its guarantors did not object to the delay, and that the delay was not a basis for recovery of the lease.

[KCM]

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