Topic: Agency

Sam, the Accountant of XYZ Bhd, often acted as the Acting Manager of the company while the Managing Director and other senior staff were absent. His normal duties when in such a position involved overseeing internal company matters and ensuring that his own Accounting Department operated well. While acting as Acting Manager, Sam purchased land at auction from TP on behalf of the company for RM 1 million. Advise XYZ Bhd whether it may withdraw from the contract on the ground that Sam acted outside his authority. Discuss.

Explain whether Sam has the authority stated below to purchase the land on behalf of the XYZ Bhd.

1. express authority
2. implied authority
3. Apparent (Ostensible) Authority

Can XYZ Bhd withdraw from the contract?

p/s: Can you explain Sam's position which involve overseeing internal company matters and ensuring that his own Accounting Department should be place under the explanation of express or implied authority?