Question 1

Mrs. Peach Chow ("Peach") appointed Purki as the manager of her restaurant in Port Kelang. She expressly instructed him not to buy fish from the Fresh Seafood Co because the fish they supply has been found to contain a high level of mercury. Five days after his appointment, a pretty salesperson from Fresh Seafood Co visited Purki. After exchanging pleasantries which include her congratulating Purki on being the first manager of Apple's restaurant, she persuaded Purki to buy $10,000 worth of fish. The salesperson was not aware of Peach's instructions to Purki. On learning of the order, Peach paid Purki his wages up to that day and terminated his appointment with immediate effect.

Advise Peach as to her liability, if any, to Fresh Seafood Co.

Question 2

Albert and Beatrice carry on a business in partnership as hairdressers.

(a)Albert buys a hair dryer, $100 for the business from X on credit.

(b)Albert borrows from Y $3,000 which he claims will be used for partnership purposes.

(c)Albert buys from Z on behalf of the partnership two dogs, an Alsatian and a poodle.

The partnership agreement between Albert and Beatrice expressly forbids Albert from entering into any of these transactions. X, Y and Z were ignorant of these restrictions.

Advise X, Y and Z as to their rights against Beatrice and/or Albert. What would the result be if X, Y, Z had notice of the restrictions?