1. Paul engages Arthur as his agent to sell three cars for the best price possible but for not less than K2000 each. The agent's commission is to be 10 per cent. Arthur informs Paul that he has found a buyer for the first car for K2000 and, after deducting his commission, remits K1800. In fact, Arthur has bought this car himself. There are two potential buyers for the second car, offering K2200 and K2400 respectively. Arthur carelessly loses the address of the second buyer and, to avoid extra work, sells the car for K2200 and again remits the money to Paul, after deducting his commission. Arthur cannot find a buyer for the third car and, therefore, sends it to his friend Terry, who lives in another town, asking Terry if he will attempt to sell the car. Terry is unable to sell and returns the car to Paul who then discovers that Terry's carelessness has caused damage to the car to the extent of K400. Advise Paul.
2. Milon borrowed K15,000.00 from Fred to finance the expansion of his enterprise. It was further agreed that Fred should act as Milon's sole agent for the distribution of Milon's goods in Lesotho for a period of 10 years. Receipts were to be remitted to Milon monthly, less a deduction for commission and a further deduction in respect of repayment of principal and interest on the loan. After two years Milon wishes to withdraw from the agreement since he feels that Fred is unsuccessful in promoting the sale of his goods. Advise Milon.
3. Alan, the purchasing officer of an electrical goods manufacturer, is authorized to buy materials for the company at prices which must not exceed those laid down by the directors. Alan agrees to buy copper wire form Xaviour at a price which is higher than the prescribed maximum price. Alan also enters into a second agreement to buy switches from Yorum in return for which Yorum promises to pay a commission to Alan which Alan is not authorized to accept. The details of these two transactions are now known to the company. What action may the company take?