Assignment 1 & 2
Assignment 1 & 2
Assignment 1 & 2
INDIVIDUAL ASSIGNMENT
(LAW 416)
ASSIGNMENT 1 & 2
Koh entered contract with Tomes Publishing House to produce a new commercial law textbook. Koh
recently found out that his book agent, Gan, had received a personal commission of RM10,000 from
Tomes Publishing House while negotiating the publishing contract on his behalf. As result,Koh will
suffer a loss of RM30,000. Koh is very angry.
Gan is an official agent of Koh. As an agent, Gan has to fullfill his duty to his principle, Koh.
One of it is not to make secret profit out of the performance of his duty. Secret profit means bribe or
any payment of a secret commission received by the agent over and above the commission or other
remuneration agreed by the principal and the agent. However, if the principal knows of the profit
gained by the agent, and the principal consent to it, it is no longer “secret”.
In this situation, Gan failed to fullfill one of his duty as an agent. Koh has right to claim
remedies from the act of Gan. The remedies available for Koh who did not consent to the secret profit
is repudiate the contract especially in the case of disadvantageous. Secondly, Koh may recover the
amount of the bribe from Gan according to Section 169 CA 1950. For example of the case of TAN
KIONG HWA V. ANDREW S.H. CHONG (1974). The plaintiff authorized the defendant as his
agent to sell the flat for RM45,000 and the defendant sold it for RM54,000 and the difference of
RM9,000 was credited to the company. Court held that the plaintiff was entitled to recover RM9,000
from the defendant as the defendant had breached his duty as an agent. Third, Koh may refuse to pay
Gan his commission or other remuneration. For example of the case of ANDREWS V. RAMSAY
AND CO (1903). In this case, the plaintiff (i.e the principal could recover both sums that is the
commission paid to the agent and the secret commission received by the defendant from the third
party. Forth, Koh may dismiss or terminate Gan for breach of duty. Fifth, Koh may sue Gan and
Tomes Publishing House giving the bribe for damages for any loss he may have sustained through
entering into the contract. For the example of the CASE : MAHESAN V. MALAYSIAN GOVT.
OFFICERS CO-OPERATIVE HOUSING SOCIETY LTD which the appellant (agent) had bought a
piece of land for RM944,000 from the vendor for the respondent and the vendor previously received
pay of RM456,000 for the land. Court held that respondent could recover either the bribe or the
amount of actual loss suffered by it as a consequence of entering into the contract. Last but not least,
Koh may also bring criminal charges for bribery under the Prevention of Corruption Act 1961.
Assignment 2
Discuss whether any of the transactions are governed by the Sae of Goods Act 1957
Answer:
Sales of good Act 1957, under section 4(1) which a contract of Sales of Goods is a contract
whereby the seller transfer or agrees to transfer the property in goods to the buyer for a price. The
goods is the subject matter of the contract. ‘Goods’ have been defined under § 2(7) of the Sale of
Goods Act, 1930, to include every kind of movable property, including stocks, shares, crops,
grass, severable objects, etc. It is supplemented by the definitions of movable and immovable
property under § 3(36) and § 3(26) of the General Clauses Act, 1897. A bungalow, which is
under land(houses and building) , is not regarded as goods. So it is not governed by the Sale of
Goods Act 1957. An ancient coin, which was sold as a curio piece & not currency, is regarded as
a goods. So it is governed by the Sales of Goods Act 1957. A shoes, which is under all form of
moveable property, is regarded as goods. So it is governed by the Sales of Goods Act 1957
References
Maini, B. N., Charanadithiya, Sharma, M., kaur, G., & Daagba, I. (2019, March 22). "goods" under the
sale of Goods Act, 1930. Academike. Retrieved January 2, 2022,
from: https://www.lawctopus.com/academike/goods-under-the-sale-of-goods-act-1930/