Renovation Debt Claim Allowed Despite No Written Contract (Commentary)
Case: Leow Kim Yoon & Ors v Z Seng Renovation Enterprise [2025] CLJU 711 – Shah Alam High Court
The Shah Alam High Court held that property owners can be held liable for renovation debts even when there is no signed contract—if the facts show they benefited from the works without paying.
Background – Brief Facts
A renovation contractor sued a homeowner and her two sons for RM116,280, covering renovation works and a friendly loan. Payment was partly attempted via a cheque from the sons’ business, but the cheque bounced. The owners argued there was no contract with the sons and that the works were done voluntarily.
Key Evidence
- WhatsApp messages between the contractor and the mother proved the scope of work, agreed costs, and repeated acknowledgments of debt.
- Dishonoured cheque from the sons’ company was treated as an admission of debt.
- The sons, as co-owners of the renovated property, were found jointly and severally liable under the doctrine of unjust enrichment.
The Law
- Privity of Contract is not a shield if the defendants have been unjustly enriched at the plaintiff’s expense (Dream Property v Atlas Housing [2015] 2 MLJ 441).
- WhatsApp chats and bank records can be admissible proof of agreement and debt acknowledgment.
- A dishonoured cheque can be strong evidence of indebtedness under s.47 Bills of Exchange Act 1949.
Legal Points to Note:
Property owners cannot avoid payment for renovation works by relying on the absence of a written contract. If the evidence shows they benefited from the works, the courts may hold them liable—especially where there is clear proof of agreed costs and part-payment attempts.
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Disclaimer: The above proposition is subject to actual facts and circumstances and shall never be referred as the actual law without seeking legal advice. Consult us for more information!