Question

MALAYSIAN BUSINESS LAW

Farid and Ah Fong graduated from a university in 2020 with a qualification in Bachelor of Business and Commerce. They decided to form a business offering advice to clients who wish to grow their businesses at a large scale. Fatimah who is a novice businesswoman is looking for a successful business partner in order to grow her business. She met a businessman by the name Felix but she is unsure of his financial credibility. She approached Farid and Ah Fong for consultation and advice as she came across their advertisement in the social media. Farid and Ah Fong did a thorough business research and recommended to Fatimah to proceed to have a business dealing with Felix as a business partner. Fatimah approached Felix and entered into a multi-million-dollar project. After a few months, Fatimah discovered that Felix is a financially troubled businessman. Fatimah is very upset. She approached Farid and Ah Fong for a clarification. However, Farid and Ah Fong claimed that they have conducted a thorough research on Felix’s financial standing. However, it has now transpired that Farid and Ah Fong did not look at the financial standing of Felix for the year 2018 but only looked at the financial standing for the year 2019. They claimed that there is no need to check the financial standing for the last two years. They also claimed that since they just graduated, they do not have much experience. Fatimah seeks your advice as to her rights against Farid and Ah Fong

Answer 1

After reading the case completely we can say that Farid and Ah Fong were not able to give correct advice to Fatimah. They started business as offering advice to clients who want to grow their business at a large scale. When Fatimah contacted them for business advice. Then they should provide best advice to her so that she can take right decision for her business. But in this case Farid and Ah Fong were not able to find out the correct financial wealth of Felix who was the business partner of Fatimah. After reading the case completely I found that Farid and Ah Fong argument against Fatimah that information regarding total financial wealth was not required. In my opinion it was wrong because before starting any contractual business venture then complete information should be available for both the parties.

Some of the rights are available for Fatimah. Which are given as follows -

1. Fatimah can file case against Farid and Ah Fong as they did not provide complete information regarding Felix.

2. Fatimah can ask for compensation from Farid and Ah Fong.

3. After reading this case, I have found out Felix was also wrong so Fatimah can sue him and can ask him for compensation.

4. As per my advice to Fatimah I would suggest her to take stand against Farid and Ah Fong. Because they were failed in performing their duty.

5. After reading the case I would say that Fatimah can also talk to Farid, Ah Fong and Felix. Mutual decision also can be taken in this case.