Mgt611 VU Current GDB Spring 2012
Last Date: 12 June 2012
Miss Maria Anwar is looking to invest in a property for renovation purpose. She contacts a local property surveyor, Mr. Akbar, and instructs him to find her a large but detached house which can easily be converted into 10 separate flats for letting.
Maria has Rs.5 million to invest in the renovations. She instructs Akbar to ensure that the desired property must be structurally sound and alterable. It can also be done within the budget (Rs. 5 million) and to meet local planning regulations.
Akbar’s Aunt Zunaira is selling Dumpster Manor, a very large house which is practically derelict. Akbar is a beneficiary in Zunaira, s will and knows that the greater the value of her land, the greater will be his inheritance. She also offers Akbar a Rs. 50,000 bonus if he can find out a buyer who will pay the asking price of Rs. 10 million.
Akbar assures Maria that the renovations can be done within the budget and also in accordance with the local planning regulations. In fact, Akbar asked his secretary (Miss Mariam) to call the Local Council. Mariam forgot to mention that the house would be converted into 10 separate dwellings.
> Being an agent, discuss how Akbar has breached his duties?
> You are required to advise Akbar of his contractual as well as fiduciary duties which he has to perform according to the above scenario?
The complete answer of both questions are in case study.
1. he breached the contract for his personal benefits from inheritances.
2. Akbar assures Maria that the renovations can be done within the budget and also in accordance with the local planning regulations and he has to act accordingly and if he not do so then he would be liable for any damage sustain by Maria.
Please note that it just a part of answer but not complete answer. you can get idea from it and can make your own ans.