Question 1

Ali, the owner of a shop selling Malaysian chicken rice, planned to sell his business, which included the goodwill and lease of the business premises. In October 2019, he started negotiations with Jameel. Ali told Jameel that the profit from his shop was more than RM 100,000 a month. This figure was much higher than the actual profit. Jameel was an experienced businessman. He did not believe the vendor and decided to check on the number of customers at the shop. He hired Tom, a private detective working for Inteligencia Sdn Bhd, to do this for him. Tom kept Ali's shop under observation for two weeks and then submitted a written report to Jameel. According to the report, the shop had been busy all day and late into the night and should have no difficulty clearing a profit of RM 100,000 per month. (Unknown to Tom, the two weeks during which he had observed the shop was the period of a Malaysian Food festival during which tourists and locals have been intensively buying Malaysian chicken rice as it is a signature meal of the festival). Relying on this report, Jameel and Ali signed the purchase agreement on 31 December 2019, which did not mention the shop's profits. After signing the agreement, Jameel spent the evening dining with Ali. In the course of the evening, Jameel confided to Ali how he had originally doubted the monthly profit cited by him and how pleased he was that his private detective had, by independent observation, confirmed the profit figure given by him (Ali). Jameel took over the shop in early January 2020. By the end of May 2020, Jameel realised that the business would be lucky to make a profit of RM 40,000 a month. Advise Jameel as to his contractual rights, if any, against Ali. (20 marks)

Question 2 (20 marks) Problem based question... Advise Jameel as to his non-contractual rights, if any, against Tom

This unit is called Malaysian Business Law. So please use English or/and Malaysian cases. Any laws or statutes come from the Contracts Act 1950. IRAC method is required