QUESTION 2: On 4 March 2014, Samad, an antique collector, entered a contract for the purchase of an antique watch, which was described in good faith by Khuzairi, the seller, as more than 100 years old. Samad paid a deposit of RM10,000 out of the total price of RM50,000 and promised to pay the balance within one week. On 6 March 2014, while attending an auction for antiques, Samad met Leha, who told him that she was the person who sold the antique watch, which she inherited from her father, to Khuzairi. Leha told Samad that the watch is not very old, as her father bought the watch on the day that Malaysia got its independence, i.e., on 31 August 1957. Samad was very disappointed with what Leha told him and immediately sent an email to Khuzairi stating that he intended to terminate the contract he entered with Khuzairi on the grounds that there was a misrepresentation of fact. Samad also wanted to claim back the RM10,000 deposit that he has already paid to Khuzairi.
REQUIRED: (The answer must be supported with the relevant cases and acts)
i. Identify the validity of the contract between Khuzairi and Samad.