Produksi Jitu Sdn Bhd produced a Malay film called 'Legenda Ratu Hijau: Puteri

Saadong'. Mr Alex a cinema owner at Sungai Petani, negotiated with Produksi Jitu Sdn Bhd,

regarding the rights to show that film for four weeks at RM500,000. Produksi Jitu's Managing

Director Mr Shahbani said the film was a real bargain with an extraordinary new visual

experience since the film uses 3D-HD photography. Mr Shahbani showed Mr Alex a report that

estimated the average takings of the film when shown at cinema in Shah Alam. Mr Alex read the

report. It stated on average the film will make approximately RM600,000 per week. Mr Alex

thought he might send his accountant to look at the accounts to verify the report, but decided not

to. Mr Alex was impressed with what Mr Shahbani had said and in any event, he wanted to be

the first cinema in his town to show 3D-HD film. Mr Alex purchase the rights to show the film at

RM500,000. It turned out to be disaster. The photography was ordinary. At the time of released,

three other 3D-HD films were released at the competitors' cinemas. Mr Alex made only

RM100,000 per week over the four-week period. Later, Mr Alex got to know that the report

shown to him, had been prepared by Mr Shahbani's trainee accountant Dania. Dania got the

figures wrong and the report should read the film will make approxiamately RM50,000 per

week.

a) Advise Mr Alex whether he has any action against Produksi Jitu Sdn Bhd.

b) Identify a remedy that will be available to Mr Alex.