Mr. Panda owned a shop selling antique goods named Memories Store. As an owner, he needs to travel all around Malaysia in order to attend a number of auctions per year. When Mr. Panda went to these auctions, his best friend Grizzly will run the shop. Mr. Panda instructed Grizzly, that he could sell any of the items displayed in the shop as long as he got at least seventy five percent of the price displayed on the item. Grizzly was warned that he is not allowed to purchase any stock for the shop.

While Mr. Panda was away at an auction, Grizzly sold to Mr. Ice Bear a bedside cabinet for sixty five percent of the displayed price. Grizzly also purchased a necklace for RM350 from a trader. He believed this deal to be a good bargain, one that he felt Mr. Panda would not want to missed.

On Mr. Panda's return, he very frustrated because Grizzly sold the bedside cabinet below than seventy five percent of the price displayed. On the other hand, he discovered that the necklace was very rare and in fact worth RM3000. He approved and accepted the transaction made by Grizzly.

Mr Panda would like to know whether he can claim from Grizzly the losses suffered by him. Advise Mr. Panda the way of creation of agency that can occur among them and his rights as principal based on the situation given.

Support your answer with the provision in the Contract Act 1950 and decided cases (if any).