In view of the law of contract and subject to the provisions of the Contract Act 1950, critically review the case of question below in relation to transactions entered by the Agency highlighting the remedies available in the event of default.

You are required to attempt your answer on the following sequence

1. Facts of the case:

2. Law

3. Application of the Law:

4. Conclusion:

# Providing relevant sections as per contract law 1950 and applicable landmark cases

are essential.

QUESTION

Ahmad engages a forwarding agent by the name of Parjo, to transport a consignment of some fabric from Bandung to Malaysia. Arrangements were made so that the consignment is to be carried by sea and to be landed at a place in Tanjung Kupang, Malaysia. This is not an official commercial port of entry into Malaysia. The reason for this is so that Man could avoid paying import tax to the Malaysian government. Parjo was instructed to unload the consignment at a certain secluded place near Tanjung Kupang. Upon arrival at the Malaysian shores, Parjo proceeded to unload the consignment. While he was at it, Parjo was arrested by the Malaysian authorities and the consignment

was confiscated. Parjo was charged with illegally bringing in taxable items into Malaysia and evading import taxes. Parjo was found guilty and paid a hefty fine for the offence.

Parjo seeks your advise whether he may claim any indemnity from Ahmad in relation to the losses he suffered since he had acted as Ahmad's agent.

Advise Parjo