Fatah was a sales manager of Jual Tanah Berhad (JTB), a company that deals in the sale and purchase of...

Fatah was a sales manager of Jual Tanah Berhad (JTB), a company that deals in the sale and purchase of agricultural land. Three months ago Fatah resigned from JTB. The employment contract between Fatah and JTB provided, among others, that Fatah could not make use of JTB’s client list nor copy their sales method within a year after Fatah left JTB.

Four months after Fatah left JTB, he assisted his Lofah, who is Fatah’s girlfriend, in setting up a company called Beli Rumah Sdn Bhd (BRSB). BRSB runs a business similar to that of JTB i.e. in land and real estate transactions. Lofah and her younger brother are the only two shareholders of BRSB. Under the direction and guidance by Fatah, Lofah approaches customers of JTB for business and has successfully entered into several lucrative contracts with the customers.

Upon realizing this JTB sent a letter to Fatah reminding him of his contract with them. Fatah however claim that he has done no wrong and continue assisting BRSB. JTB wish to sue Fatah for breach of contract. Advise JTB whether they would be successful in claiming against Fatah.

(7 marks)