Ron had appointed Dobby as his used-car business agent. One day, Ron instructed Dobby to burn his competitors car, Harry. Ron promised Dobby to indemnify him against all consequences of the act. Relying on this promise, Dobby burnt Harrys car. Subsequently, Harry sued Dobby for damages amounting to RM20,000 which Dobby paid immediately. Dobby wants to recover the RM20,000 from Ron and the legal expenses that he had incurred.

Advise Dobby based on legal provisions in the Contracts Act 1950. (9 marks)