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    Assignment Law416

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    Olivia Rina
    Koh entered into a publishing contract and suffered a loss after learning his agent Gan received an undisclosed personal commission from the publisher. Koh can recover the commission amount from Gan as agents have a duty not to make secret profits. For Kamil and Kamal's transactions, the purchase of ancient coins would be governed by the Sale of Goods Act as coins can be considered goods, while the purchase of real estate and shoes would not be covered.

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    Assignment Law416

    Uploaded by

    Olivia Rina
    374 views6 pages
    Koh entered into a publishing contract and suffered a loss after learning his agent Gan received an undisclosed personal commission from the publisher. Koh can recover the commission amount from Gan as agents have a duty not to make secret profits. For Kamil and Kamal's transactions, the purchase of ancient coins would be governed by the Sale of Goods Act as coins can be considered goods, while the purchase of real estate and shoes would not be covered.

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    Koh entered into a publishing contract and suffered a loss after learning his agent Gan received an undisclosed personal commission from the publisher. Koh can recover the commission amount from Gan as agents have a duty not to make secret profits. For Kamil and Kamal's transactions, the purchase of ancient coins would be governed by the Sale of Goods Act as coins can be considered goods, while the purchase of real estate and shoes would not be covered.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    374 views6 pages

    Assignment Law416

    Uploaded by

    Olivia Rina
    Koh entered into a publishing contract and suffered a loss after learning his agent Gan received an undisclosed personal commission from the publisher. Koh can recover the commission amount from Gan as agents have a duty not to make secret profits. For Kamil and Kamal's transactions, the purchase of ancient coins would be governed by the Sale of Goods Act as coins can be considered goods, while the purchase of real estate and shoes would not be covered.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    FACULTY OF BUSINESS AND MANAGEMENT

    BA246-BACHELOR OF ADMINISTRATION (HONS.)


    INTERNATIONAL BUSINESS

    BUSINESS LAW
    (LAW416)

    ASSESSMENT SUMMARY

    INDIVIDUAL ASSIGNMENT

    PREPARED BY
    OLIVIA RINA ANAK FEDRICK TUTONG (2021459168)

    PREPARED FOR
    MR. IKHWAN NAGUIB BIN JUSOH

    SUBMISSION DATE
    02 / 01 / 2021
    Assignment 1 (15 %)
    Koh entered into a 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.

    1. ISSUES & INTRODUCTION


    I = ISSUES
    Issue in this case is Koh as a principal have the rights to claim his loss due to
    incompetency of his agent that had received a personal commission of RM10,000from
    Tomes Publishing House without his consent.

    I = INTRODUCTION
    Nature of agency is the relationship arising when a principal appoints an agent to act on his or
    her behalf in dealing with third party. Thus, an agent has the authority to transact with the third
    party to form a contract between the principal and the third party. It is provided in Section 137 of
    Contract Act 1950 – Principal is the person who employed the agent or the person who
    authorized the agent to act on his behalf. In addition, under Section 137 of Contract Act 1950 –
    agent is a person employed by the principal to do an act or specific task or represent the other in
    dealing with the third party. Furthermore, there are two type of contract that involve under the
    agency relationship. One of it is contract between the principal and the third party were arranged
    by the agent appointed. Meanwhile the other types are contract between agent and principal. This
    type of relationship is where the agent has the authority to act on the principal’s behalf.

    2. L= LAW + ILLUSTRATIONS + CASES


    By performing an agency relationship, there is several duties of agent involved. This includes to
    not let his own interest conflict with his duties which provided under Section 168 of Contract Act
    1950. To not let his own interest conflict with his duties means that the agent required to acting
    in good faith which is the agent must disclose everything that he knows to the principal to all
    material facts of the contract and all money and profit should be put in principal’s account.
    Another duty of agent is to avoid in making a secret profit out of the performance of his duties.
    Secret profit means any payment of 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 the profit gained by the agent and the principal consent to it, it is no longer
    secret thus the agent is entitled to keep the profit. Moreover, there are remedies available for the
    principal who did not consent to the secret profit. It includes:
    i. Repudiate the contract especially if the principal feels it will bring disadvantages to him
    ii. Principal may recover the amount of bribe from the agent
    iii. The principal may refuse to pay the agent his commission or other remuneration,
    iv. The principal may terminate the agent for breach of duty
    v. The principal may sue the agent and the third party giving the bribe for damages for any
    loss he may sustained through entering the contract
    vi. Principal may also bring criminal charges for bribery under the Prevention of Corruption
    Act 1961.

    In the case of Andrew V Ramsay and CO (1903), the Plaintiff instructed the Defendant to sell
    property and agreed to pay him 50 pounds as commission. The Defendant received 100 pounds
    from the purchaser as deposit for the property. The Defendant paid 50 pounds to Plaintiff and
    kept the remaining 50 pounds in payment of his commission with the Plaintiff’s consent. The
    Plaintiff learn later that the Defendant had also received 20 pounds as commission from the
    purchaser. Plaintiff sued Defendant to recover the 20 pounds and also the 50 pounds he had paid
    the Defendant. The court held the Plaintiff can recover both sums as the Defendant breach his
    duty as an agent.

    3. A= APPLICATION
    By applying the duties of agent, the remedies available for the principal who did not consent to
    the secret profit and the case of Andrew V Ramsat and CO (1903), Koh may take an action to
    sue his agent, Gan and recover the sums RM10,000 of personal commission that Gan had
    received from Tomes Publishing house. This is because Gan had received a personal commission
    of RM10,000 from Tomes Publishing House without Koh’s consent. Thus, there are remedies
    available for Koh as he did not consent to the secret profit. The remedies include:
    i. Principal may recover the amount of bribe from the agent
    ii. The principal may refuse to pay the agent his commission or other remuneration
    iii. The principal may terminate the agent for breach of duty.

    4. C= CONCLUSION
    As a conclusion, my advice to Koh is he has the rights to recover the amount of bribe from the
    agent, refusing to pay Gan his commission or other remuneration, and Koh may also terminate
    Gan as an agent as he breaches the duty of agent.

    Assignment 2 (15%)
    Kamil forms a contract for the following transactions with Kamal:
    i. The purchase of a bungalow at Taman Li Hua for RM500,000
    ii. The purchase of 30 pieces of ancient coins for RM10,000
    iii. The purchase of a pair of branded shoes for RM200
    Discuss whether any of the transactions are governed by the Sale of Goods Act 1957.

    1. ISSUE & INTRODUCTION


    I=ISSUE
    Issue in this case is whether there are any transactions are governed by Sales of Goods Act 1957
    exist between Kamil and Jamal?

    I= INTRODUCTION
    According to section 4(1), a contract of Sales of Good is a contract whereby the seller transfer or
    agrees to transfer the property in goods to the buyer for a price. There are two types of contracts
    of sale which is:
    i. Sale
    Section 4(2) – a sale is an absolute contract
    Section 4(3) – in sale, title passes to the buyer at the time of contract
    ii. Agreement to sell
    Section 4(2) – an agreement to sell is a conditional contract
    Section 4(3) – in an agreement to sell, title passes:
    a) at some future time
    b) subjects to some condition to be fulfilled later
    Section 4(4) – an agreement to sell becomes a sale when:
    a) the time elapses
    b) the conditions are fulfilled

    2. L = LAW + ILLUSTRATIONS + CASES


    According to Sales of Goods Act 1957, Section 4(1) a contract of Sale of Goods is a contract
    whereby the seller transfer or agrees to transfer the property in goods to the buyer for a price.
    Referring to the case MOSS V HANCOCK, a gold coin, which was sold as a curio piece & not
    as a currency, is regarded as goods. In this case, we can see that Kamil forms a contract for the
    purchase of 30 pieces of ancient coins for RM 10,000.

    3. A = APPLICATION
    Based on the case, there is two types of subject matters for the contract which is goods that
    include and not include. By applying the case MOSS V HANCOCK, the purchase of 30 pieces
    of ancient coins for RM 10,000 is regarded as goods. On the other hand, land (houses and
    building) is goods that is not include refer to the purchase of a bungalow at Taman Li Hua for
    RM500,000. According to Section 4 (1), Kamil (seller) agrees to form a contract with Kamal
    (buyer). As mentioned above, there is 2 types of contracts. As for this case, according to section
    4(2) an agreement to sell is a conditional contract where Kamil as a seller form a contract to the
    buyer for a price. In an agreement to sell, title passes at some future time and subjects to some
    condition to be fulfilled later.

    4. C = CONCLUSION
    Therefore, the transactions governed by Sales of Goods Act 1957 exist when Kamil make an
    agreement referring to section 4(1) is a contract sale of goods whereby the seller transfer or
    agrees to transfer the property in goods to the buyer for a price.
    REFERENCES

    Essay on the Law of Agency. (2021, September 1). Retrieved from LawTeacher:
    https://www.lawteacher.net/free-law-essays/commercial-law/the-law-of-agency-commercial-
    law-essay.php

    PERCETAKAN NASIONAL MALAYSIA BHD. (2006, January 1). Sales of Good Act 1957
    (1989). Retrieved from CommonLII:
    http://www.commonlii.org/my/legis/consol_act/soga19571989203/

    Sakina Shaik Ahmad Yusoff, R. I. (2015). Consumer Protection and the Malaysian Sale of
    Goods Act 1957. Retrieved from Medwell Journals:
    http://docsdrive.com/pdfs/medwelljournals/ibm/2015/452-459.pdf

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