Karim owns a chain of pharmacies in Subang Jaya, Seremban and Kota Bharu. He manages the ones in Subang Jaya and Seremban while the one in Kota Bharu is handled by his assistant, Zali. Two days ago, Kota Bharu was hit by flood due to continuous heavy rain. Karim's pharmacy was flooded and some of the medical supplies and other goods were damaged as a result of the flood. To minimize the losses, Zali sold all the damaged medical supplies at below market price. He also sold the medical supplies which were not damaged at a low price as it was easier to clean the premises when it is empty. He also sold the furniture in the pharmacy and the infrared digital thermometer with a stand even though it was still functioning. Karim was upset when he found out what Zali did, but Zali claims that he had to sell everything due to the flood. Karim suffered losses and wishes to take legal action against Zali.

Advise Karim on the above situation by applying the Contracts Act 1950 and relevant cases.