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Ali and Ahmad engaged Johan to incorporate a trading company for them. While in the process of incorporating the company, Johan contracted for the purchase

Ali and Ahmad engaged Johan to incorporate a trading company for them. While in the process of incorporating the company, Johan contracted for the purchase of six (6) luxury automobiles for the future company from Kereta Sana Sini Berhad; a company owned by his wife. The company after its incorporation refused to ratify the contract.

Discuss the effect of the contract.

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