Topic: Law of Agency under Commercial Law.

Question:

Ahmad who was a director for Benaroya Sdn Bhd was directed to buy a land on behalf of the company. Ahmad bought the land with the price of RM15,000, 000.000 even though he knew that the market price of the land is only RM956,000.00 and he did not inform Benoraya Sdn Bhd accordingly. It turned out that Ahmad had received RM20,000.00 as a bribe or secret commission from the vendor.

Explain the following. (a) The method of creation of agency between Ahmad and Benoraya.

(b) The FOUR (4) types of duties breach by Ahmad to Benoraya Sdn Bhd according to legal provisions.