Question
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
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.
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