Question

1. Ir. Azmi who owned two M&E firms was not satisfied with the income from those firms. He went to Hishammsudin & Co office, a solicitor firm to discuss about his property. A legal clerk advised him to sell the firms and invested the money somewhere else. He was asked to sign the documents, which was supposed to be Sale Deed, but in fact it was a Gift Deed in the name of the legal clerk. The legal clerk misappropriated that money without the knowledge of his principal. Discuss and explain the legal implications of this case.

Answer 1

Ans:-

Ir.Azmi can avoid the contract because there no consent given by Azim for gift deed.

A legal clerk advised Azim to sell the firms and invested the money somewhere else. He was asked to sign the documents, which was supposed to be Sale Deed, but in fact it was a Gift Deed in the name of the legal clerk. The legal clerk misappropriated that money without the knowledge of his principal.

Azim can avoid the contract by proving ,he is not given consent for gift deed he signed on documents by treating it as sale deed . Legal clerk was misappropriated Money with out Azim knowledge.

Therefor the contract is avoided and Azim can claim his dameges from legal clerk.