1. Neptune Furniture & Co. (‘Neptune’) is a partnership that supplies electronic items in the Klang Valley and it recently entered into a contract with Pluto Bhd. (‘Pluto’) to sell electronic items worth RM 9000 to Pluto. The decision to purchase the items from Neptune was made by the full board of directors of Pluto. Simson who is a partner of Neptune is also a director of Pluto. He did not disclose this fact to the company or its board of directors. However, he did not vote on the matter. This matter was discovered recently by the board of directors of Pluto.
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3. With reference to a relevant case law, advise the company whether it can avoid the contract with Neptune. Use ILAC to write the answer.