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Jane has agreed to sell her Porshe 911 Cabriolet worth RM1.3 million to Lim for the price of RM 500,000. The decision was made rather hastily as Jane need money to pay her creditors who were chasing after her for the debts she owes them. The deposit was to be paid two weeks later. When Lim made the said payment within the said two weeks, Jane refused to accept claiming that she made a mistake and that she was under undue influence. Jane also claim that is was unaware of what she had agreed with Lim as she was very upset and had taken some medication to relax her mind thus impairing her judgement.
Lim, who is a car dealer is upset over Jane's refusal as he had promised a reputable customer to sell the said car at a price of RM800,000. In view of the good pricing, his customer had agreed and Lim had, in fact accepted 50% of the purchase price and had proceed to submit his client's financing applications for the balance of 50%. His client is also very anxious to get the car which will be presented as a wedding gift to his daughter.
He seeks your opinion whether Jane can use all the above stated excuses to avoid the contract.
He also wants to know what are the causes of action he has against Jane and seeks your advise on to the appropriate remedy for him against Jane.
In the mean time, Mr. Lim's client is also in the process filling a suit against him and he seeks your advice
Discuss how a business might limit agency problem between management and creditors
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