Sabah has been Leased on 1878 by two merchant Overbeck and Dent under their private company. When this company was dissolved , the leased was absorbed by the British government, when Malaysia got their independence n on 1963, Sabah was again absorbed by Malaysia. This series of transfer built a suspicious thinking that from the beginning , the idea is to diminished it's owner , the Sultanate of Sulu of the sovereign rights over Sabah. The legal position of Malaysia is not clear being not a party to the original Lease of Sabah. The suspected manaipulations and the misinterpretations from the word 'Padjak " as cession or sale is not also clear , because the signatory to the Contract is only one person but Sultan Jamallul Kiram. If it is a sale two party must be involved as signatory . The analysis of most expert of the Agreement is more of a 'Franchise " rather than lease or sale because only the owner has signed the contract permitting the two merchant to act as a holder of the area perpetually to the life of the company or any of it's heir represented by Dent and Overbeck. The transfer by the private company or non government entity to British Government is strongly questionable, because the Sultanate has 'Friendship Treaty to the Sultanate of Sulu kingdom that was violated. Much more that the transfer to the Malaysian Federal is questionable being not a partner to the 1878 Franchise Agreement.