TUNKU ABDUL RAHMAN UNIVERSIYTY COLLEGE

BBBL2113 INVESTMENT INDUSTRY LAW

Tutorial 4:

AGENCY

1. Amanda had recently passed her driving test and knew nothing about cars, she
asked her friend, James, who claimed to have knowledge of cars, to find her a
suitable secondhand car. She stipulated that the car should not have been
involved in an accident. James found a car on which he noticed the bonnet had
been crumpled and straightened or replace, but he still recommended Amanda to
purchased it for RM10,000. A few months later it became apparent that the car
had been involved in a serious road accident, repaired badly and was
unroadworthy. Is there any legal relationship between Amanda and James?
Discuss.

2. What is agency by estoppel or ‘holding out’?

According to S.190 Contract Act 1950,when an agent has, without authority, done acts
or incurred obligations to third persons on behalf of his Principle, the Principle is bound
by those acts or obligations if he has by his words or conduct induced such third
persons to believe that those acts and obligations were within the scope of the agent’s
authority.

3. Distinguish implied appointment from appointment by way of estoppel.

4. Alice appointed Carmen to be her agent, instructing her to buy a Prada bag on
her behalf costing not more than RM10,000-00. Carmen saw a RM15,000-00
Prada bag which she knew that Alice had always wanted and therefore bought
the bag for Alice. Alice is very furious and refuses to pay for the Prada bag.
Advise Alice whether she can refuse to pay for the Prada bag.

STRICTLY FOR TARUC STUDENTS ONLY

Any forms of circulation and/or republication are strictly prohibited.
 TUNKU ABDUL RAHMAN UNIVERSIYTY COLLEGE

BBBL2113 INVESTMENT INDUSTRY LAW

5. The logistic company delivered a consignment of fruits to its destination. On

arrival, there was no one to receive the consignment. The driver did not know the
Defendant’s address and was directed to store the consignment in a cold-storage
nearby. The logistic company later claimed for the charges for the cold-storage
from the Defendant but the Defendant refused to pay. Advise the logistic
company.

STRICTLY FOR TARUC STUDENTS ONLY

Any forms of circulation and/or republication are strictly prohibited.