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Business Law Essay

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Alan, Dave and Joe have been very good friends since their university days. In January 2010, they formed a private limited company, ADJ to run a real estate agency at Suntec Street, with Alan and Dave each holding 20% of the shares. Joe owns the remaining 60% of the shares and is the only one director of ADJ.
ADJ needed to buy a motor car for the company’s needs, as all 3 of them frequently bring their clients around looking for properties to buy, sell or rent. During the sale of a second hand motor car by Motor Dealers to ADJ, Motor Dealers represented to Joe that the car had travelled 12,000 km, but is of show room condition. After ADJ bought the car and sent it for servicing, Joe discovered that it had travelled more like 120,000 km. ADJ tried to return the car and get a refund of the purchase price from Motor Dealers. Motor Dealers refused saying that it believed its statements were true.

ADJ recently entered into a contract with XY Partnership for the extension and renovation of their office premises to be completed by 26 March 2010. Their contract contained the following clause 12: “XY Partnership agrees to pay ADJ the sum of $3,000 per day by way of liquidated damages, in respect of unfinished work for each day after 26 March 2010.”
XY Partnership was not only 6 days late in finishing the building work, but the finished product proved unsatisfactory. ADJ had to spend a large sum of money to remedy the defects and would like to sue XY Partnership for liquidated damages for the delay in completion and the shoddy workmanship.

The employment contract of Jack, the Senior Sales Manager of ADJ, included a clause 9 stating that if he left the company he would not compete with it for a period of 5 years from the date of leaving, within a radius of 16 km of the company’s operations at Suntec

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