Madam Choo instructed her agent Luqman to buy a house in Putrajayafor her. Luqman decided to purchase a fire insurance for the house even though there was no instruction from Madam Choo to do so. When he told Madam Choo about the insurance, she requested for time to consider whether to accept the contract for the insurance or not. She ratified the insurance 3 months after the contract was made but by that time, the house had already been destroyed by a fire.

Advise Madam Choo.

(10 marks)

(b) Meera appointed Asad as her agent. She instructed Asad to sell two houses belonging to her at the current market value. According to their agreement, the houses should be sold within a year. After his appointment as an agent, Asad met with a terrible road accident. He became semi paralysed and cannot move without assistance.

Advise Meera on whether she can terminate Asad's appointment.

(10 marks)