Jun Hew owns a cyber cafe, which is managed by his nephew, Chin Chai. Jun Hew had gone mountain trekking in Nepal and was not in contact with Chin Chai for a month. As there were a number of robberies nearby, Chin Chai decided to install a security system in the cafe using closed circuit cameras. He had desperately tried to contact Jun Hew about his fears over the robberies but could not get him.

Chin Chai contacted Safe and Sound Security Systems (SSSS), a local security firm that specializes in using the latest security systems. Chin Chai was so impressed with the security systems available, that he ordered the latest security cameras worth RM20.000.

In the meantime, Chin Chai decided to update the computers in the cyber cafe as they have become outdated and the customers had asked him to install the latest computers or they will go to other cyber cafes which offer better graphics. He contacted a number of local computer suppliers including Cyberworks, for quotations on new computers. Cyberworks, had the best quotation as they provided ongoing service for repairs and maintenance of computers sold. Chin Chai placed an order for 80 new computers with them. Chin Chai signed the contract to purchase the computers in his own name but actually intending to buy the computers for Jun Hew. Jun Hew returned from Nepal last week. Yesterday, the workers from SSSS came to install the security system. However, Jun Hew refused to let them install the security cameras claiming that he had not authorised Chin Chai to order such an expensive security system. Further, he was surprised when Cyberwork's representative telephoned to confirm the order for the new computers. Jun Hew refused to confirm the order. However, the next day, his friend Alan informed him that the computers from Cyberworks were worth buying as he had been given a good deal. When Jun Hew called Cyberworks to ask them to deliver the computers, he was informed that the company had sold the computers to another buyer.

Advise Jun Hew on his rights and liabilities under the law of agency as to whether:

a)He is bound to the contract Chin Chai made with SSSS.

b)He can insist that Cyberworks deliver the computers under the contract made on his behalf by Chin Chai