Jaya Textiles Sdn. Bhd. was incorporated in 2017 with the sole object of manufacturing and selling textiles. Driven by the increase in the global demand for medical glove due to the current Covid-19 pandemic, the Board of Directors of Jaya Textiles Sdn. Bhd. has decided to venture into rubber glove manufacturing. Jaya Textiles Sdn. Bhd. has entered into an agreement with Super Mach Bhd. to purchase machines to manufacture rubber gloves. This was done without altering the constitution of the company. Ramlan, a shareholder is unhappy with this new venture of the company as he believes that the seemingly lucrative nature of the glove manufacturing sector will not last forever and as a newcomer Jaya Textiles Sdn. Bhd. would not be able to compete with the big players in the industry.

a)Advise Super Mach Bhd. on the validity of the contract and whether it may take legal action against Jaya Textiles Sdn. Bhd. if it has defaulted the payment of the purchase price.

b)Advise Ramlan on whether he has any rights to take legal action in relation to the abovementioned contract.