Question
Rahim called Peter to act as his agent to buy a large quantity of face mask. Since Peter knows the suitable supplier, he agrees to
Rahim called Peter to act as his agent to buy a large quantity of face mask. Since Peter knows the suitable supplier, he agrees to do so. Rahim instructed Peter as follows: Quantity: 3,000 face masks in 60 boxes Price: 1 box (RM3- RM5). 60 boxes (RM180 - RM300). Should not exceed RM300 Colour: Black and Blue only Due to high demand for face mask, Peter managed to found only one supplier who can supply the 3,000 face mask but for the price of RM7 per box i.e. RM420 for 60 boxes and the colour are not only black and blue but also mix with yellow, purple, red and brown. Peter agreed to buy the face mask in that quantity, price and colour and entered into a contract with the supplier on behalf of Rahim. He then told Rahim that he bought the face mask from the supplier at the price of RM8 per box i.e RM480 to make some profit for himself. Discuss whether the action taken by Peter is within the law of agency.
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