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Homework answers / question archive / Jasmin, a sole trader and the owner of "Jasmin's Ever Fresh Fruits", appoints Jill as her agent

Jasmin, a sole trader and the owner of "Jasmin's Ever Fresh Fruits", appoints Jill as her agent

Business

Jasmin, a sole trader and the owner of "Jasmin's Ever Fresh Fruits", appoints Jill as her agent. The scope of the agency is limited to the buying of fruits from fruit producers. Tan is a fruit producer and often sells fruits to "Jasmin's Ever Fresh Fruits".

 

Scenario 1

The agency agreement between Jasmin and Jill places no limit on the amount for which Jill can purchase fruits.

a. Jill tells Tan that she is contracting on behalf of Jasmin and purchases flowers from Tan.

b. Jill tells Tan that she is contracting on behalf of Jasmin and purchases a painting from Tan.

c. Jill purchases fruits from Tan. (Jill does not disclose that she is in fact acting on behalf of Jasmin. Thus Tan thinks he is contracting with Jill.)

d. Jill purchases a painting from Tan. (Jill does not disclose that she is in fact acting on behalf of Jasmin. Thus, Tan thinks he is contracting with Jill.)

 

Scenario 2

Later, Jasmin and Jill explicitly agree that Jill would not have the authority to buy fruits in excess of RM20 000 per transaction. Jill has often in the past made purchases of up to RM25 000 per transaction, and Jasmin has always paid Tan for those transactions. Jasmin does not inform Tan of the limitation on Jill’s authority. Jill tells Tan that she is contracting on behalf of Jasmin and, in a single transaction, purchases fruits from Tan for RM25 000.

Consider the above scenarios and determine who may be bound by the respective contracts with Tan under the law of agency.

In a separate situation, Meena invited her good friend Leela to become her agent to sell cosmetic products in Sabah. Meena was in Kuala Lumpur. Meena informed all her regular customers that Leela was her agent in Sabah, and she would be acting on her behalf to do all the regular jobs that Meena normally performed, including distributing the products and collecting money from the customers. This appointment commenced in January 2021 and would end in December 2021. Two months later, Meena has been diagnosed with breast cancer and she became unconscious. Meena later died in May 2021. Leela who had no knowledge about Meena’s death, continued her duties as usual. In April 2021, she delivered several boxes of the products to customers within Kota Kinabalu and Tawau. Only in July 2021, Meena’s daughter contacted Leela and informed Leela about the death of her mother. Meanwhile, Leela has engaged her auntie to perform some of the works on her behalf. This was done from the beginning of her appointment as agent to Meena and Meena has no knowledge about the existence of this sub-agent.

Based on the above facts, discuss the legal implications that arise in the context of agency law.

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