IL AWa361119

5
LW/DEC 2013
CONFIDENTIAL

PART C

QUESTION 1
factories. After working
Mr Cheong Fatt is a humble businessman who owns two biscuit Maniam,
He went to see
hard for many years, he decided to venture into other businesses.
as he was interested to purchase two pieces of land from him.
from Maniam two
purchase
On 1 October, Mr Cheong Fatt entered into an agreement to
RM950,000. After paying a
pieces of land totaling in area 10 acres at a purchase price of out that certain
deposit of RM95,000 and signing the agreement, Mr. Cheong Fatt found
Mr Cheong
portions of the land were used by Tenaga Nasional Bhd for transmission cables.in the form of
Fatt argued that the purchase price ought to be reduced for the encumbrancescables and that
the structures. Maniam refused and argued that he had no knowledge of theacross the land.
he did not make any representationthat transmission lines did not run return of his
Disappointed, Mr Cheong Fatt wants to rescind the contract and claim the
deposit.
Fatt
Two weeks before entering into the said sale and purchase agreement, Mr Cheong brochure
came across a brochure published by the Summit Golf Resort (M) Sdn Bhd. The storey
basically promotedthe Summit Golf Resort which provided, among others, a three and
golf resort complex with convention halls, a golf course, a swimming pool, tennis courts
the most alluring facility being the sea sports facilities, a floating seafood restaurant and
floating chalets. All facilities were promised to be of a high standard.

After reading the brochure, Mr Cheong Fatt signed up for membership and paid RM50,000
After accepting the membership fees, Summit Golf Resort (M) Sdn Bhd informed Mr Cheong
Fatt that he had to pay RM330 per monthfor the use of the facilities and he agreed.

However, much to his dismay, Mr Cheong Fatt discovered that there was only a single
storey clubhouse instead of the promisedthree storey clubhouse and sea sports facilities
were not available. Being dissatisfied with the facilities he confronted the General Manager
of Summit Golf Resort (M) Sdn Bhd, who continuouslyassured him that the facilities would
be provided in the future. Mr Cheong Fatt, however wants to rescind the contract with
Summit Golf Resort (M) Sdn Bhd and claim the refund of RM50,000.

Advise Mr Cheong Fatt.

(30 marks)

END OF QUESTION PAPER