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As their business grew, in February 2020 Sonic signed a contract to purchase a new factory in Penang valued at RM2 million. MMS' Articles of
As their business grew, in February 2020 Sonic signed a contract to purchase a new factory in Penang valued at RM2 million. MMS' Articles of Association require the signature of both directors for any purchase exceeding RM1 million in value. Sonic has issued the payment of 10% deposit using MMS' company cheque. The remaining 90% purchase price must be paid by 30 June 2020. However due to current economic conditions, Amy thinks that MMS cannot afford this purchase. Explain to Amy, whether MMS may avoid this contract.
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