(a) Fatin is an agent appointed to sell skin care products for Flawless Beauty Pte Ltd, having authority to sell on a credit basis. She managed to convince a local beauty salon and sold them several items of products worth RM10000 on credit. She however disregarded any effort to investigate or make the usual enquiries as to the financial position of the salon. A week later, the salon closed their business as they were facing financial difficulties. In relation to duties of an agent towards his principal, advise Flawless Beauty Pte Ltd on their right to recover the RM10000 from Fatin and/or the local salon.

(b) Discuss an agency relationship that is created by ratification