Answer with Issue, Rules, Application, Conclusion method.

GHL Friedman describe agency as 'the relationship that exists between two persons when one, called the agent, is considered in law to represent the other, called the principal, in such a way as to be able to affect the principal's legal position in respect of strangers to the relationship by the making of contracts or the disposition of property.

Based on this statement, discuss the creation of agency.

 

2. Bonsu Vlogs (respondent) was a private limited company that selling replacement parts and equipment for all sort of machinery. In order to make it easier for customers to purchase their equipment, the respondent co-operated with a finance company, Hong Hong Bang (Hong Hong) where Hong Hong would give hire-purchase credit facilities to customers who bought the equipment's from the respondent. Vincent (appellant) bought a machine ('the machine') at a price of RM163,000.00 from the respondent. The appellant paid a down payment of RM32,600.00 and for the purpose of payment of the remainder of the purchase price, the appellant obtained the hire-purchase credit facility from Hong Hong for the sum of RM130,400.00. The appellant only made two installments to Hong Hong. The respondent was successful at re-selling the machine at RM60,000.00. Following the calculations by the respondent, after deducting the total which was paid to Hong Hong and price obtained for the resale of the machine, the appellant still owed the respondent a sum of RM106,184.16. This was the main ground for the respondent's claim. The appellant not only challenged the respondent's claim but also counter-claimed against the respondent for losses incurred as a result from the faulty machine which was said to be not of high quality and was improper for their usage.

Advise parties.

 

Mr. Ajani the CEO of SIRIM Berthed. He is keen to buy several big fans for its nine conference rooms. He has written to Mr. Braveheart, CEO of Big Ass Fan LLC (Big Ass) (https://www.bigassfans.com/) his intention to buy 9 industrial fans to be install at SIRIM.  Mr Ajwain sent a WhatsApp note to Mr. Braveheart: "Ok, bro, we accept your offer at RM 21 million for the 9 big ass fans. If can, would be very good. Cappuccino on me when you visit Malaysia...."

 Can you give us a discount of RM1 million? 

Based on your analysis and evaluation on the above situations, provide your advice if there was any valid Offer and Acceptance under contract law of Malaysia?