Scenario C

Tee Poo is employed as the managing director of Almary Ltd, whose main object is to retail office equipment. His contract of employment contains a clause which states that in the event of his leaving employment of Almary Ltd, he will not solicit their customers for a period of two years. Tee Poo resigned from his employment and together with his wife, Tooty formed a new company, Desks Ltd, whose main object is also retailing office equipment. Wawa is a salesman employed by Desks Ltd. She was given a customer lists by Tee Poo following which she began to solicit Almary Ltd's customers. In order to raise cash for his new business, Tee Poo enters into a contract to sell his house to Rahul for RM150,000. Wawa, who has always admired the house, approaches Tee Poo and makes him an offer of RM160,000. Tee Poo then transfers the ownership of the house to Desks Ltd and on behalf of the company enters into negotiations to sell the house to Wawa.

Advise Almary Ltd and Rahul on any legal action they can take. (30 Marks).