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UNIVERSITI TEKNOLOGI MARA
DEPARTMENT OF LAW

TEST 1

COURSE: BUSINESS LAW
COURSE CODE:LAW 416
DATE:17 OCTOBER 2012 (WEDNESDAY)
TIME:1 ½ HOURS

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of THREE QUESTIONS:
Answer TWO (2) questions only (1 Question x 25 Marks = 25 Marks)

2. Do not bring any notes or reading material into the test hall. If you have ‘accidentally’ done so, please surrender the materials to the invigilator. Failure to do so, may lead to the charge of copying or bringing notes into the test hall.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This test paper consists of 2 printed pages
ANSWER TWO (2) QUESTIONS

QUESTION 1

( a ) Merry was instructed by Datuk Y to sell a house in Penang. She was promised a remuneration of RM3000. While performing her duties, Merry has used her own money amounting to RM900. Merry received RM5000 as deposit from the buyer of the house. After completion of the transaction Datuk Y refused to make any payment to Merry. Advise the parties.

(35 Marks)

( b ) Agency can be terminated by operation of law. Discuss .

( 15 Marks )

QUESTION 2

( a ) Khairul has appointed Kamarul as his agent to sell his shop house at Jalan Suka Ria. According to the agency agreement, the shop house should be sold at price of RM150, 000 within a period of one year. 8 months after the appointment, Kamarul suffered a heart attack. He is not able to perform his duty as his agent due to health problem. Kamarul wishes to discontinue to an agent. Advise Kamarul

(35 Marks)

( b ) Agent owes duty of good faith towards his principal. Discuss.
(15 Marks)

QUESTION 3

( a ) Zaza appointed Ah Long as her agent to purchase a computer software for RM 15,000. Ah Long exceeded his authority by purchasing the software at a higher price of RM20, 000.Advise Zaza.

(35 Marks)

( b ) Discuss the maxim of Delegatus Non Potes Delegare.
(15 Marks)

End of question examination

Answer Scheme

QUESTION 1 (a)

➢ Issue - whether Datuk Y has breach duty of Principal by not paying salary of Mery
- whether Mery is entitled to the remuneration

➢ Law - introduction (definition of agency, agent and principal) - duties of principal towards his agent
- to pay the commission / agreed remuneration + ANDREWS v RAMSAY - not to prevent or hinder the agent from earning his commission - to indemnify & reimburse the agent for lawful acts done in the exercise of his duties + HICHENS v JACKSON - the agent has incurred losses / liabilities while perform his duties + KYALL v LIM KIM KEAT - duty of agent to pay his principal all sum received on his behalf + section 170 and section 171

➢ Application - Datuk Y has breach duty of principal when he refused to pay the salary to Mery and Mery is entitle to have her salary. - Authority : Sect 170 & Sect 171 of CA 1950

- Case : Andrew + Ramsay

➢ Conclusion

QUESTION 1 (b)

Agency may be terminated by operation of law.

➢ Introduction - introduction (definition of agency, agent and principal) ➢ Law - agent may be terminated by party of the contract and by operation of law - by operation of law;

i- by performance of the contract – Sect 154 of CA 1950
ii- by expiration of the term of the period
iii- by the death of either Principal or agent – sect 154 of CA 1950 iv- by...
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