$.$ law of agency is a part of contract law which involves the role and interference of the third party known as a middle person or agent.

Ariff worked as an officer in an investment company. Due to the economic downturn, the share price dropped, and it needs an immediate supervision to the matter. During that time, his employer was in Europe and could not be contacted. He took an immediate action by switching the share to another investment which he thought will be better and safer. His action however caused losses to the company. His employer claimed that Ariff was responsible for all the losses since it was done without the employer instruction. Determine and solve on the above situation. Support your answer with any relevant section and case law.

$(15$ markah$/$ marks$)$