Question 1

Suki appointed Rory as her agent to manage a food catering business in Dungun.

Rory, at the time was 16 years old. Suki had instructed Rory not to enter into any

contract with Mawar Bhd. However, Rory failed to obey the instruction and entered

into a contract with Mawar Bhd for the supply of cooking oil.

Discuss the legal position of the parties.

Question 2

Aimi appoints Brian as her agent to sell her car. She instructs Brian to sell the car for

not less than RM20.000.00. Aimi hopes that Brian would be able to sell the car for at

least RM25.000.00. Advise Aimi in the following situations:

a) Brian sells the car to Diknesh for RM 15,000.00.

b) Brian sells the car to Elaine for RM15,000.00 and receives commission of

RM2,000.00 from Elaine.

Question 3

State whether a contract exists in each of the following situations and explain your

answer:

a) Dewi agrees to sell her newly bought washing machine to Sasha for RM30 only.

b) Due to hardship in life, Sham left his family to seek his fortune elsewhere. His

two daughters were left without any means. His friend, Arul, felt sorry for the

children and voluntarily helped them pay all the necessary living expenses.

When Sham returned home, he promised to pay back all the expenses incurred

by Arul.