You are an ambitious businessman and own two companies. You are currently in a manufacturing business but now looking to enter the service industry through acquiring a financial consultancy firm. You are aggressively looking to recruit experienced and successful financial consultants for your new business. One of the applicants, John, having 10 years of experience in the field, highly impressed the interview panel (including you) with his profile and expertise in the financial consultancy area. During the interview, John also mentioned that he is currently having a two years contract with his current employer (ABC Ltd.) but is looking for a change as he could not foresee much growth in his current job. Since the panel was highly impressed by the skillset of John, you offered him the role of senior financial consultant. John also recommended one of his friends, Peter, and was full of praise for Peter. You got Peter's details from John and approached him with the role of senior financial consultant. Peter, currently working with (HiFi Ltd.), refused the offer saying he is satisfied with his current employment and still has 18 months left of his current contract. Eager to make Peter join you, you offered him one and a half times his current salary and offered to bear any liability arising from Peter's breach of contract with HiFi Ltd. Tempted by your lucrative offer, Peter left his current role and joined you as a senior financial consultant.

Required:

(a)Would you be liable to Johns's old employer (ABC ltd.) if ABC Ltd. decides to sue you for tempting John to leave the job and join you? Justify your decision. (assume that ABC Ltd. suffered huge financial losses due to John's unexpected resignation)(7 Marks)

(b)Would John be liable for breach of contract with his employer? Why or Why not? Justify by giving reasons to support your answer.(3 Marks)

Note: Clearly state the legal rule applicable to the above situation (and one precedent) before attempting the answers to the required questions. Also, answer to each part separately.