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Book/movie review
22/08/2022
Question 1
Ali, the owner of a shop selling Malaysian chicken rice, planned to sell his business
,
which
included the goodwill and lease of the bu
siness premises. In October 2019
, he started
negotiations with Jameel. Ali told Jameel that the profit from his shop was
more than
RM
100,000 a month. This figure was much higher than the actual profit.
Jame
el was an experienced businessman. He did not believe the vendor and decided to check
on the number of customers at the shop. He hired
Tom
,
a private detective
working for
Inteligencia Sdn Bhd,
to do this for him.
Tom
kept Alis shop under observation for
two weeks
and then submitted a written report to Jameel. According to the report, the shop had been busy
all day and late into the night and should ha
ve
no difficulty clearing a profit of RM 100,000
per month. (Unknown to
Tom
, the two weeks during which he
had observed the shop was the
period of a Malaysian Food festival during which tourists and locals have been intensively
buying Malaysian chicken rice as it is a signature meal of the festival).
Relying on this report, Jameel
and Ali
signed the purchase
agreem
ent on 31 December 2019
,
which did not mention the shops profits.
After signing the agreement, Jameel spent the evening
dining with Ali. In the course of the evening, Jameel confided to Ali how he had originally
doubted the monthly profit cited by
him and how pleased he was that his private detective had,
by independent observation, confirmed the profit figure given by him (Ali).
Jameel took over the shop in early Janua
ry 2020. By the end of May 2020
, Jameel realised that
the business would be luck
y to make a profit of RM 40,000 a month.
Advise Jameel
as to
his
contractual rights
, if any, against Ali.
(20
marks)
Question 2
(20
marks)
Problem based question…
Advise Jameel as to
his
non
–
contractual rights
, if any, against
Tom
Read less
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