Question
Caroline buys a large block of vacant land in a residential zone and engages a building consultant, Ravi, to assist in drawing plans and supervising
Caroline buys a large block of vacant land in a residential zone and engages a building consultant, Ravi, to assist in drawing plans and supervising a major residential building project. Based on Ravis advice, plans are drawn for a three-storey residential building with a gymnasium and shops below. It is agreed that Ravi will receive RM50,000 and procure all permits and appoint a building company to build the apartments, gymnasium, and shops. Ravi produces a glossy brochure with plans, sketches and details of the project for potential purchasers of the apartments and shops. The brochure is also to be used in assisting Caroline in obtaining a loan to finance the project. The brochure has virtual drawings of the three-storey project and promises that all appropriate permits for the project have been obtained. The brochure further assures potentially interested parties that the project will be completed within two years. Eventually, after much preliminary work, Ravi draws plans and appoints a building company. By the time the building is halfway completed, government officers inspect the work and demand that all building ceases pending further investigation. It becomes apparent that Ravi had not received all relevant approvals and permits and that the local regulations do not allow the building to be higher than two storeys. Also, no permit has been granted to build the gymnasium and shop below the building. The local council is of the view that there is insufficient local car parking to justify shops and a gymnasium. The cost of rectifying the building to only two storeys and the absence of gymnasium and shops has significant financial implications for Caroline. It is estimated that she will lose RM1.2 million by the change in plans. Advise Caroline as to her non-contractual rights, if any, against Ravi.
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