Mahmood is one of the director for Koperasi Penduduk Kg. Batu and was asked to purchase a piece of land in Gombak for Koperasi to built houses to be sold to interested members of the Koperasi. Mahmood managed to purchase a piece of land in Gombak at the price of RM500,000-00 from the owner. However Mahmood informed the Koperasi, with the knowledge of the owner, that the purchase price is RM750,000-00. The Koperasi paid RM750,000-00 to the owner who then paid Mahmood RM250,000-00. Subsequently, the payment made to Mahmood came to the knowledge of the Koperasi and the Koperasi seek your advice on the possibility of recovering RM250,000-00 from Mahmood.

Advice the Koperasi and support your answer with all relevant provisions of the Contract Act 1950 and decided cases.

[50 marks]

https://docs.google.com/document/d/1oL_ARph3EyczAL2sLprlUa1z_Y_jmW5At_l4dkVBOyw/edit?usp=sharing

http://www.agc.gov.my/agcportal/uploads/files/Publications/LOM/EN/Act%20136.pdf