(a) Two months ago, Chitto, who owned a durian orchard, agreed to sell it to Mikko for RM300,000. The transfer of the orchard was to be completed by the end of next month. Last week, Chitto, discovered that other orchard lands in the vicinity of his orchard were fetching much higher prices and changed his mind about selling the orchard to Mikko. He proceeded to set up a company, Teepu Sdn Bhd (the company), of which he was the majority shareholder and managing director. His wife, who is also a director, is the only other shareholder of the company. He then transferred the orchard to the company. He then informed Mikko that he will not be able to proceed with the sale of the property to her as it has been sold to a third party, i.e. the company, but that he is prepared to pay damages for breach of contract.Mikko wishes to sue both Chitto and Teepu Sdn Bhd for specific performance of the contract of sale of the orchard.Required:Advise Mikko whether she will be successful in her claim for specific performance. (You are required to confine your answer to issues relating to company law.) (4 marks)
