Blc2014 Electric Motors|Indemnification Assessment Answer

Jessica is a good and inspired businesswoman. She run a business selling of electric motors under the incorporation named Jazs Motor Sdn Bhd with a trademark of the Power of Jazs Bike. She is the major shareholder of the company whereas she owned 65% of the shares in the company, while Mike, her share partner owned 35% of shares. Mike who manage the daily activity of the company noticed that the company’s profit doesn’t incurred as usual whereby it was decreased 20%. While Mike’s father was admitted at hospital because his kidney problems and need RM200,000 for the operation. Mike was very worried because he doesn’t have enough money. In the extra ordinary meeting, Mike told Jessica that their company’s profit for that month was increased 20% and he said it is enough to issue dividend among the shareholders. Jessica agreed. Maimun who is the secretary company of Jazs Motor Sdn Bhd has a knowledge about the decrease profit, told Jessica about this. Jessica was very angry. On 15 January 2021, Jessica contracted in writing to sell Mrs Heart one hundred electric motors at a price of RM1000 each, freight prepaid to Mrs Heart’s warehouse. By the contract of sale, Jessica express warranted that each motor develops twenty-five brake horsepower. The contract provided that the motors would be delivered in lots of twenty-five per week beginning 22 January 2021 and that Mrs Heart should pay for each of twenty-five motors delivered but Mrs Heart was to have right of inspection on delivery. Immediately on delivery of the first lot of twenty-five motors on 22 January, Mrs Heart forwarded Jessica a cheque for RM25,000, but on testing each of the twenty-five motors, Mrs Heart determined that none of them would develop more than fifteen brake horsepower. Milando, Jessica’s son would like to have a piano for his music’s class. He wants to be a singer and piano player’s expert. On 1st December 2020, Jessica and Milando went to a showrooms of the Forte Piano Company in Kuala Lumpur and selected a piano. The price of the piano was RM8,000 and Jessica need to pay RM500 installment for 16 months. On February 2021, because Jazs Motor Sdn Bhd doesn’t incurred profit Jessica out of money to pay bills including the piano’s installement. Forte Piano Company who have knowledge about Jessica situation, send a notice that Jessica failure to make payment for February’s month and Forte Piano Company gave Jessica 7 days to pay the installment and if she failure to pay the installment, Forte Piano Company will repossess the piano immediately. CONTINUE… ______________________________________________________________________________ NAZHAS 1/2 On 28 February 2021, Jessica get a phone call from her employee Mr Tan that their warehouse which was located 100 units of motorbike was got fire. Jessica immediately went to the warehouse and she was very upset because almost of the warehouse was burned down. She was helpless. Rachel who is her accountant told her that Jessica shouldn’t be worried because the warehouse has insured with Takaful Isurance Bhd. The next day, when Jessica contact Takaful Insurance Bhd., she was told that she cannot claim any indemnification from Takaful Insurance Bhd because of the warehouse is not belong to Jazs Motor Sdn Bhd but its belong to Mike. Jessica was very sad and she doesn’t know what to do. She contacts Mike and ask about this. Mike told Jessica that she had signed an agreement that the land where the warehouse was located sold to Mike. Jessica very surprise and she doesn’t realize that the agreement that she signed was a sale and purchase agreement to sell the warehouse to Mike. Jessica went home and she ask her son pack their luggage and she need a peace place of a vacation to make up her mind. When she dined at Western Hotel, Langkawi, her son told her that the song that was sing by the band is exactly like his song that he made it for his piano’s class project. He doesn’t satisfy and he met the band leader. The band leader told him that they got the song from Mr Ang which is surprisingly is Milando’s piano’s teacher. Milando believe that he owns the song because he is the one who create the lyrics and the song. While Jessica, upon she read a flyer about motorbikes she saw an advertisement on selling of motorbike by a company known Jazss Motor Sdn Bhd located in Pantai Cenang, Langkawi. SALE 10% UNTIL 31 MAY 2021 JAZSS MOTOR SDN BHD HURRY!! GET YOUR DREAM WITH THE POWER OF JAZSS BIKE Discuss.