SUBJECT:BUSINESS LAW

QUESTION 6 (b)

Shahrul, aged 25, had no experience in any transaction regarding shares. After his father died, he inherited 30,000 shares in his fathers company. Due to his lack of experiences in handling and managing a company, he was unable to maintain the profits of the company. Being in a financial constraint, he asked for a help from his stepfather who is working as a financial advisor in one major share company in Singapore to buy the shares from his company in order to settle all the financial problems in the company. His stepfather agrees to help him in buying the shares at RM3.00, without disclosing the current value of the shares. He totally believed his stepfather and agreed for the said price. After the transaction completed, Shahrul discovers that the value of the share at the time of the sale was approximately RM6.00 and not RM3.00 as agreed earlier. He was very upset with his stepfather and wanted to set aside the sale of shares on the ground of undue influence.

Advise Shahrul. Support your answer with ONE (1) legal provision and ONE (1) decided case.

Please write the answer based on contract act 1950.