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BUSINESS LAW
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POLITEKNIK MERSING JOHORJABATAN PERDAGANGAN
DIPLOMA SAINS KESETIAUSAHAAN
TUTORIAL: LAW OF AGENCY
Question 1Mr Z, who is setting up a business in Kuala Lumpur, would like to know how an agency may arise or be created in Malaysia. Advise Mr Z. (10 marks)
Question 2In relation to agency, distinguish between actual authority and apparent or ostensible authority.
(6 marks)
Question 3Ben engaged Samy to burn Dolly’s car and agreed to indemnify Samy against all consequences of the act. Acting upon this agreement Samy burnt Dolly’s car. Dolly successfully sued Samy for damages amounting to RM15000 which Samy promptly paid. Samy wants to recover from Ben the RM15000 and his legal expenses incurred when defending the suit. Advise Samy. (10 marks)
Question 4List 5 (FIVE) exceptions to the general principle that an agent cannot delegate the authority given to him by his principal. (5 marks)
Question 5On 1 November 1984, Mr Brown wrote to Mr Muthu that Mr Ah Kow was his agent and that Mr Ah Kow would be acting on his behalf in purchasing some goods on 1 January 1985 at RM 100 000. However, on 24 December 1984, Mr Muthu was informed by Mrs Brown that her husband passed away on 1 December 1984. On 26 December 1984, Mr Nolan offers Mr Muthu RM200000 for the same goods.
Can Mr Muthu sell to Mr Nolan or is Mr Muthu bound to sell to Mr Ah Kow? State the legal implications.