Wakanda Sdn Bhd is a construction company and was awarded a project by the
State Government to construct buildings at Lesotho Valley. Both parties have signed
an agreement which provides, inter alia, that the project must be completed within
T’Challa, one of the directors of the Wakanda, is an expert in the field of civil
engineering. While out for lunch one afternoon with Erik, one of the director of
Nakia Hardware Enterprise, a supplier of construction materials, T’Challa agreed to
place a very large order from the supplier. A contract worth RM500,000 was later
signed by T’Challa on behalf of the Wakanda with Nakia Hardware after, Erik
promised to pay T’Challa RM50,000 as a commission.
One year later, when the project at Lesotho Valley was still incomplete and far
behind schedule, the State Government issued a letter of termination of contract to
Wakanda Sdn Bhd. In addition to that, the State Government claimed for damages
amounting to RM1 million. Upon investigation, Wakanda discovered that the noncompletion of the project was due to the failure of the supplier to deliver the
construction materials on time. It also appeared that the materials supplied by
Nakia Hardware were unsuitable, low quality, overpriced and the supplier is widely
known in the industry for its poor record.
Wakanda Sdn Bhd is of the view that T’Challa as a director should be responsible for
the losses suffered by the company. Advise Wakanda Sdn Bhd.
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