1. Describe 5 ways by which an agency can be created. 2. How can an agency be terminated? 3. Bentong Farms Berhad, owner of several organic farms was looking for a delivery agent for the whole of the Klang Valley region and has appointed Fresh Delivery as its agent. You have just been appointed the operations director of Fresh Delivery, a company handling deliveries of fresh farm produce. You are due to meet the managing director of Bentong Farms Berhad to explain your duties as their appointed delivery agent. Prepare your explanation for the meeting. 4 . Last month Abu appointed Batu as his agent for 6 months to sell his (Abu's) ten separate lots of land located in various parts of Rawang. Batu seeks your advice whether he may buy one of the lots for himself in the name of his mother, Tua. 5. Paul asks Tom to sell his two computers for him for not less than RM 1,500 each, for an agreed commission of 10%. Tom purchases one for himself without disclosing this to Paul and pays Paul RM1,500. Tom then sells the other to Janet for RM 2,000 but pays Paul RM1,500 stating that this was the selling price. Discuss if Tom has breached any of his duties as an agent. 5. What are the various forms of authority of an agent? 7. P appoints A as her agent, instructing A to buy a lady's watch on her behalf costing not more than RM5,000. A saw a RM10,000 ladies watch which P had always wanted, on sale for RM6,000 and bought the watch on behalf of P costing RM6,000. P is very upset and refuses to pay for the watch. Advise A as to whether P can refuse to pay for the watch. 8. Jagan, who operates his own delivery service, was instructed by Max, a fresh vegetable supplier, to deliver a consignment of high quality fresh salad vegetables from Cameron Highlands to a luxurious hotel in Singapore. He was told that the goods must reach its destination not later than 5.00am in the morning. He took the highway heading south and after about 2 hours he encountered a massive traffic jam due to an overturned truck carrying highly inflammable products. The highway crew diverted all traffic to use the old road. This would have prolonged his journey by another 6 hours by which time the vegetables would have perished under the hot sun. He was also unable to contact Max. Jagan then decided to sell the vegetables to a local vegetable seller in a nearby town at a very much lower price. When Max discovered what had happened he was very angry and refused to pay Jagan's delivery fees. Advise Jagan under the law of agency as to whether his actions were correct and whether he can claim his delivery fees
