Question
aExplain how an agency relationship may be created. Critically discuss the policy for holding a firm liable for the actions of its partner on the
aExplain how an agency relationship may be created. Critically discuss the policy for holding a firm liable for the actions of its partner on the theory of agency by estoppel.
b) MyFrozen Sdn Bhd (MSB) is a frozen food supplier to local restaurants. One day, MSB received an order from a restaurant in Kelantan for 100 boxes of frozen creampuff. MSBs managing director, Maggie, instructed her workers, Mee and Beehun to deliver the frozen creampuff to Kelantan using a trailer. At the same time, Maggie also ordered Mee and Beehun to send 200 boxes of cookies to his brother in Kelantan. After three (3) hours of travel, Mee and Beehun had to stop as the East Coast Expressway was closed to all traffic under the Movement Control Order (MCO) due to COVID 19 pandemic. They were told that the Expressway would be closed for at least two (2) weeks. Mee and Beehun contacted Maggie to inform her of the situation and for further instructions, unfortunately, to no avail. They tried to contact Maggies office but was told that Maggie who was in China for a meeting was stranded there due to the lockdown declared by the China government. They then sent a message to Maggies handphone, but Maggie was too busy to check it. During the delay, Mee and Beehun found the frozen creampuff was not in good condition. They decided to sell them to riders who were also stranded. At the same time, they also sold the cookies which expiry date is 15 April 2021. Advise Maggie, Mee and Beehun. Support your answer with relevant sections and case law.
c)Give a scenario explaining the duty of the agent in avoiding any form of conflict between the interest of himself and principal. In your opinion, does the Contract Act 1950 (Act 136) give the necessary rights to the principal when its agent commits corruption in carrying out its responsibilities as an agent? Support your answers with relevant cases.
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