Lily is the purchasing officer of Jitu Jaya Berhad. She is empowered by the company to order stationeries not exceeding RM5000 for the company's headquarters in Shah Alam. She is also required to record and report every single purchase to the General Manager. In January 2011, Lily purchased five set of computers for a total sum of RM10,000. She did not report the purchase to the General Manager.

The General Manager seeks your advice on the duties owed by Lily as an agent to the company under the Malaysian law of agency