UNIVERSITI TEKNOLOGI MARA

ASSIGNMENT 2/ TAKE HOME TEST

COURSE

COMMERCIAL LAW

COURSE CODE

LAW439

EXAMINATION

SEMESTER MAC - JULY 2016

INSTRUCTIONS TO CANDIDATES

1.
2.
3.
4.
5.
6.

This question paper consists of PART A & PART B

Answer all questions in PART A and one (1) question in PART B.
Start a new answer at a new page.
The 25 marks will be converted to 10 %
LATE SUBMISSION WILL AMOUNT TO DEDUCTION OF MARKS
Date of submission: 23 April ( seminar 3)

SECTION A : Answer all questions. 0.5 mark each.

1. Which of the following is NOT the effect of agency by necessity?

a.
b.
c.
d.

A contract exist between the Principal and the third party

The agent will be protected from any claim of the Principal
A contract exists between the agent and the principal
The agent will be entitled to additional payment for his effort to protect
and to preserve the safety and the interest of the Principal.

2. A person who is appointed by an agent to act in the business of the agency

and is under the control of the agent is called :
a.
b.
c.
d.

A substituted agent
A sub agent
A principal
An offeror

3. An agency can be created in these ways EXCEPT:

a.
b.
c.
d.

By
By
By
By

express appointment
termination
estoppels
necessity

4. The maxim of delegates non potest delegare means :

a.
b.
c.
d.

An
An
An
An

agent
agent
agent
agent

cannot receive a secret profit

cannot work with another Principal
may allow others to do his job
is not allowed to employ another person to do his duty.

5. An agency contract may be terminated by the operation of law in the

following manner EXCEPT :
a.
b.
c.
d.

Death of the Principal

Insanity of the agent
Principal has gone bankrupt
Termination by the Principal

6. The Principal has the duty to indemnify the agent in the following situation
EXCEPT :
a. The act has incurred losses or liability in performance of his duty
b. The agent cause injury to third party in the execution of his duty
c. The agent suffers injury during the course of his duty due to the
principals negligence
d. The agent ignores the Principals instruction
7. The main duties of an agent are as follows :

I.
II.
III.
IV.
a.
b.
c.
d.

To exercise care and diligence in carrying out his work

To render proper account when required
To pay to his Principal all debts owed to him
Not to act solely for the benefit of his principal.

i and ii
i, ii and iii
ii and iii
All the above

8. Law of agency is governed by :

a.
b.
c.
d.

Agency Act 1950

Contract Act 1950
Government Act 1950
Sale Act 1950.

9. The word Principal can be defined as :

a.
b.
c.
d.

A
A
A
A

10.
a.
b.
c.
d.

person
person
person
person

who
who
who
who

is employed by the Principal

authorized the agent to act on behalf of him
is appointed by a third party
makes an offer to another

The word agent can be defined as :

A
A
A
A

person
person
person
person

who
who
who
who

authorized the agent to act on behalf of him

is employed by the principal
makes an offer to another
is appointed by a third party.

SECTION B : Answer one question. 20 marks each.

QUESTION 1
Ah Meng appointed Siva to buy Bens land on his behalf. Siva was told to
purchase the property at a price not exceeding RM 100,000. The property was
important for Ah Mengs future investment. Ben has agreed to sell the said
property at RM 70,000. Both Ben and Siva agreed that the price of the property
would appear as RM 100,000 in the contract. The contract was signed between
Ah Meng and Ben. The price of the property was paid in full. Later Siva kept
RM20,000 and Ben RM10,000.
Advise Ah Meng.

QUESTION 2
Mercy Floral Sdn Bhd imports roses and tulips from New Zealand to be sold in the
local market. Mercy Floral Sdn Bhd usually used Mas Cargo Company to deliver
the goods from New Zealand to KLIA. The aircraft, carrying the goods made an
emergency lending in Dubai Airport due to the weather. The plane was stranded
for two days. Mercy Floral could not be contacted from Dubai airport. The airlines
agent sold the flowers for half of its price since the flowers started to wither.
When Mercy Floral Sdn Bhd discovered what had happened they refused to
accept the action taken by the airlines agent.
Advise Mercy Floral Sdn Bhd.

All the best