Sandra is a fashion designer. She appoints Demi to sell her products with instruction that Demi must not sell the dresses below RM500 each and Demi would receive RM100 commission for every dress sold. Sandra also pays Demi RM1,000 per month to store her large stock of dress in Demi's storage shed.

One day, the roof of Demi's shed leaked badly and most of the dresses were damped by rainwater. Demi is afraid that Sandra's dresses would be damaged and unsaleable if left in that condition. Demi tries to contact Sandra about the matter but she is unable to reach Sandra who is away in London. Demi then decided to sell off half of the stock of dresses at RM300 each to her neighbours.

Sandra is furious when she returned to Malaysia and discovered what Demi had done. Besides that, Sandra also heard from her designer friends that Demi had been selling her own range of dresses that are based on Sandra's designs.

Advise Sandra as to whether there is an agency contract between her and Demi when Demi sold the dresses for RM300 each and also whether she can sue Demi for selling her own range of dresses.