an example law of agency :) based on past year question.

1. PREPARED FOR : MADAM FARHAH

2. Highlight the
main point

4. Azuka instructed her agent, Miss Cosmas, to sell her
hotel at a price not less than RM500, 000. Cosmas
sold the said hotel to Lenko for RM450,000 claiming
that it was the best price. Six month later, Azuka
discovered that Miss Cosmas had received RM50,000
from Lenko. Advise Azuka what course of action she
can take against Miss Cosmas and the remedies
available under the law of Agency
Principle :
1)Sec 135 = The definition of principal and agent
Contract exist : Contract of Agency
Contract btw (P) & (3rd)
Contract of Agency : btw (P) & (A) : Normally provide payment of the agent for
arranging each contract of booking with the customer in percentage basis.
- Agent has a duty not to make any secret profit ( no sec for this as it is based on
common law). Secret profit = extra payment, secret commission or any financial
financial advantage given by 3rd party.
- -Applying section 169: (case: Boston Deep Sea Fishing & ice Co. V .Ansell), (The
case Mahesan v Government Officers Cooperative Housing Society Ltd)
i. Applying section 169: Right of principal to benefit gained by
agent when agent deals on his own account in business of
agency without the principal ‘s consentrincipal knows and
consent ,agent is entitled to keep the profit as it is no longer a
secret .
ii. The 6 elements If principal does not agree .

5. Application :
In this case , Azuka discovered that Miss Cosmas had
received RM 50,000 from Lenko,, 3rd party. RM 50,000 is a
secret profit, bcs Azuka ws not aware of the said 50,000
since Cosmas did not inform her principle, Azuka from the
outset. Miss Cosmas take RM 50,000 from Lenko without
consent Azuka. Therefore, Miss Cosmas has breached of
duty by accept a sec profit from Lenko.
-6 elements if principal does not agree.
Azuka can takte action under under case: Boston Deep Sea
Fishing & ice Co. V .Ansell)and (The case Mahesan v
Government Officers Cooperative Housing Society Ltd)

6. d) Dismiss the agent for breach of
duty
case: Boston Deep Sea Fishing & ice
Co. V .Ansell)
Held : The Agent had been
terminated cause he had
breached the duty o the agent
for making secret profit
The case Mahesan v Government
Officers Cooperative Housing Society
Ltd
Held : The company can claim
the payment given by the
third party to the agent

7. Conclusion
The principal , Azuka can take legal action with
sue the agent, Miss Cosmas and recover the
secret commission take by Miss Cosmas