Question
1.Andrew owned a well-established boutique in Ipoh. He is due to retire in six-months, so he decided to sell the boutique. He was introduced to
1.Andrew owned a well-established boutique in Ipoh. He is due to retire in six-months, so he decided to sell the boutique. He was introduced to Benny through one of his friend. During the meet up, Andrew said to Benny "There is no any other boutique within 30 miles from here". When asked about the boutique's performance, Andrew said that "I believe the annual level of profit is around RM800,000". Benny asked his accountant, Chloe to verify Andrew's stated level of profits. Chloe confirmed Andrew's statement, but in fact the boutique only make around RM300,000 profit per year. Benny asked for a few weeks to think it over. Andrew later discovered that TM, an international fashion store, is due to open a new store next to his boutique. He did not inform Benny about this.
Few days later, Benny confirmed the purchase of the boutique with Andrew. A buy-sell agreement was then entered into between Andrew and Benny. Benny later discovered the true level of profit of the boutique as well as the opening of the international fashion store. Advise Benny.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started