Describe effects of contract made by an agent


Problem 1: Explain the following statements and support your answer with provisions referring to law of agency and decided cases by the court.

a. THREE (3) effects of contract made by an agent.

b. Responsibility of agent to exercise work with care, full effort and apply skill he possesses.

c. Responsibility of agent not to let his own interest conflicting with his duty.

Problem 2: Section 11 of Contract Act 1950 stated that:

"Every person is competent to contract who is of the age of majority according to the law to which he is subject, and who is sound mind, and is not disqualified from contracting by any law to which he is subject."

In Malaysia, the general rule stated that contract by infants is void. However, there are certain exceptions to this rule

Discuss the following contracts and support your answer with ONE (1) decided case by the court.

a. Contract of Insurans

b. Contract of scholarship

c. Contract for necessary

Problem 3: Discuss the legal problems below. Support your answer with legal provisions on agency and decided cases by the court.

a. Ashraf, a vegetable supplier at Cameron Highlands has hired his agent, Ravi to deliver his vegetables to Ipoh. On his journey to Ipoh, the lorry drived by Ravi was involved in an accident with a vehicle drived by Kia Hui. The accident resulted in injuries to Kia Hui. Kia Hui then wants to claim compensation from Ravi.

b. Anggun Kirana, a cosmetic entrepreneur had appointed Syarikat Rex Sendirian Berhad as her agent to lauch her company product's Türkiye Kozmetik at Turkey. After three months in the market, the agent fails to sell the product and has appointed sub-agent to sell the product to Greece without approval. Anggun Kirana felt unsatisfied regarding this matter.

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