ABBL 3104 COMMERCIAL LAW OF MALAYSIA 2009

ACKNOWLEDGEMENT

In completion of this assignment, our group consists of Lim Chia Wee, Koh Chee Boon,
Tan Ming Li, Lee Sin Ho, Lim Wee Pheng have gained much of knowledge, benefits,
and experiences as well as we cannot gain it when our secondary school and college life.
Furthermore, we all have learned what is the real meaning of teamwork through the day
we spent together in order to produce this assignment.

First of all, we would like to give fervent appreciation to our tutor, Mr. Gilbert
Sim Lim Chong, who played a major important role in helping us by give us much of the
information and lead us to conduct the right research in the process of completing this
assignment. Besides that, we have a great esteem for the patience and tolerance by Mr.
Gilbert Sim Lim Chong to guide us throughout the whole process of completing this
assignment. Next, our thankfulness also goes to all our classmates. They always giving us
support and provided us some suitable data that can be fully utilized in our assignment.

Thank you.
 ABBL 3104 COMMERCIAL LAW OF MALAYSIA 2009

From the investigation and analysis of this case, we may justify that Tenga acts as
an agent to his boss which is his principal in the above statement. Firstly, Section 135-
“Agent” and “Principal” of Law of Agency involves in this case, in which can be defined
as an “agent” is a person employed to do any act for another or to represent another in
dealings with thirds persons. The person for whom such act is done, or who is so
represented, is called the “principal”. As a principal, boss appointed Tenga in form of
express appointment to be his agent to manage his private matters such as his investment
in the stocks & shares, his extensive holding of properties which were all rented out, and
to maintain proper accounts for all income and expenses.

Furthermore, boss instructed Tenga by giving actual authority to sell his 6 storey
office block in Kepong for a price of not less than RM5 million. But after 3 months,
Tenga found that there is only one person who interested is asking for RM3 million for
the office block. In this situation, Tenga exceeded his actual authority, but Section 149
states that where acts are done by one person on behalf of another but without his
knowledge or authority, he may elect to ratify or to disown the acts. So, boss authorized
Tenga to sell the office block for RM3 million because of the time of slow economy in
which makes Tenga an agent by ratify the acts.

When Tenga has actually breached his duties as an agent, the conflicts occur
when he did not act with Section 164 to 178. First of all, Tenga failed to obey the
principal’s instruction, in which can be further explained by it shows Tenga’s own
interest was conflicted with his duty as an agent in the circumstance of sale of 6 office
block in the price of RM3 million to his own brother-in-law by using the excuse of time
of slow economy. The second duty that Tenga failed to carry out was to pay to principal
all sums received on his behalf and not to make any secret profit out of the performance
of his duty, where the both points can be explained there was a discrepancy of about
RM8000.00 for which Tenga could not account for or explain. Besides that, Tenga failed
to render proper accounts when required in which boss discovered that the records for the
monthly rentals and maintenance expenses were in a mess.
 ABBL 3104 COMMERCIAL LAW OF MALAYSIA 2009

As a result, boss can terminate the agency by operation of law since Tenga
breached his duty as an agent in which is failure to perform well his duties in the contract
of agency. Besides the termination of agency, boss also may subsequently claim the
remedies for the damage done in a form of compensation. According to the Section 74,
Remedies state that when a contract has been broken, the party who suffers by the breach
is entitled to received, from the party who has broken the contact, compensation for any
loss or damage cause by him. Boss can actually claim the loss RM2 million of profit from
the sale of office block. In addition, boss allows claiming compensation from the damage
done in which there was a discrepancy of about RM8000.00 for which Tenga could not
account for or explain.