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Lim agreed to sell to Ricky his house “Awesome Villa” on Tioman Island at the prevailing market value. Before the contract was signed: Business Law Course Work, TU, Malaysia

Lim agreed to sell to Ricky his house “Awesome Villa” on Tioman Island at the prevailing market value. Before the contract was signed, Lim took Ricky over to the house and represented to him that it was a freehold property and had a good potential for investment as it was strategically near the town area. After Ricky had purchased the house, he discovered that none of the representations was true.

The house was a leasehold, and a week before the representation was made, the local government issued to Lim a notice that the government would compulsorily acquire his land at a price lower than the market value. Provide legal advice to Ricky on his right to take action against Lim and possible remedy or remedies available to him – in this lesson’s discussion thread.

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