Study Unit 5:

Q5.PaulrecentlyboughtaHDBflatthatwassituatedrightnexttoanexpressway.Theconstantnoise from the traffic and the wind was causing him sleepless nights.

Hence, he decided to engage FixIt Pte Ltd to install double-glazed glass panes on all his windows at a price of S$100 per window. He was hoping that the double-glazing would reduce the noise from the expressway and also prevent the wind from coming into the flat.

Jerry, the boss of FixIt, came to inspect the windows before his team started work and issued an invoice for S$1,000 for 10 windows. Paul decided to further negotiate the price. Jerry, anxious to close the deal, said, "Okay, we'll do it for a special price of S$800, payable upon completion of the works."

Two weeks later, FixIt finished the double-glazing of the windows. Upon inspection of the windows, Paul found that one of the 10 windows was not double-glazed and all of them still let in some wind.

FixItagreedtodouble-glazetheremainingonewindowbutinsistedthatmoniesbepaidforthenine windows that were double-glazed.

Advise Paul whether he is entitled to discharge the contract and make payment of $800, only when the last window has been properly double-glazed and all windows no longer let in some wind.

STUDY UNIT 6

Q6.EuropeaGallerywasanartdealerinLondon,Paris,HongKongandBrussels.On1December,it formallyappointedMarkLewisasitsagentinSingaporetosourceforChinesepaintingsbySingapore artists.

On 15 January, Singapura Stars, an art gallery in Singapore, emailed Europea Gallery and said that they havebeenapproachedbyMark.SingapuraStarswantedtoverifytheidentityofMarkandconfirmthathewasindeedactingforEuropeaGallery.Withinafewdays,EuropeaGalleryhadissuedaletterto Singapura Stars, stating "Mark Lewis is our duly authorized and appointed agent to source for all types of paintings."

On7February,Mark,purportingtoactonbehalfofEuropeaGallery,signedacontractwithSingapura Stars to purchase a painting by a 19th century European painter, for S$500,000.

On the same day, Mark then visited Jane and contracts to sell this 19th century European painting to her for S$750,000.HedidnotmentionthathewasanagentofEuropeaGallery.Instead,hegavehispersonal bank account and told her that the sales proceeds could be banked directly into his personal bank account.

(a)Discuss two possible forms of authority which Mark possessed, as an agent of Europea Gallery. Support your analysis with the facts given above.

(b)Is the contract that was signed by Mark (with Singapura Stars) valid and binding on Europea Gallery?Why?

(c)Did Mark breach any duties as an agent of Europea Gallery?Explain.