a) Jack and Jill formed a partnership called Jack and Jill Enterprise, to sell state of the art mobile phones. Since they are new in the business without previous experience in sales, they approached a friend, Markus who had worked as a marketing manager for many years. Markus agreed to lend RM300,000 to the firm on condition he is put in charge of the day to day management of the business with a monthly salary of RM10,000 in addition to 18% commission on each item he sells. The business prospered under the stewardship of Markus. Markus represented the face of the business as Jack and Jill stopped participating in the business and rarely made an appearance. Unknown to Jack and Jill, Markus borrowed RM100,000 from Mudah Finance in the firm's name upon the representation that the monies were needed for expansion of the business. Mudah Finance loaned the money believing that it was for the business of the firm. It however charged an interest rate of 30% over the rate currently set by Bank Negara. Markus used the loan to purchase a Toyota SUV motor car which he used mostly for private purposes. The firm has defaulted on the loan.

Discuss the relative rights and liabilities of the parties.

b) Peter, Paul and Mary planned to form a company to manufacture and market an organic lip care product. In the name and on behalf of the company they engaged the services of Natasha, an ex- beauty queen, to conduct a market survey to study response of the public to this new product. The terms of the contract provided that Natasha would be paid RM8,000 monthly plus allowances and her employment will be continued after the formation of the company. The company received its notice of registration last month. Last week the directors of the company at the company's first board of directors' meeting decided to terminate the services of Natasha. The directors contend that the employment contract is not binding on the company.

Advise Natasha on her legal rights.