Agency contract, duty of, apparent authority and indemnity Q8

Q.

(a) State and explain three (3) ways by which an agency may arise. (3 marks)

(b) Briefly explain five (5) of the duties of an agent towards his principal. (5 marks)

(c) Distinguish between ‘apparent authority’ and ‘actual authority’ in relation to agents. (4 marks)

(d) Raz engaged Bakar to burn Ali’s car and agreed to indemnify Bakar against all consequences of the act. Acting upon this agreement, Bakar burnt Ali’s car. Ali successfully sued Bakar for damages amounting to RM5,000.00 which Bakar promptly paid. Bakar wants to recover from Raz the RM5,000.00 and his legal expenses incurred when defending the suit.

Advise Bakar whether he may succeed. (5 marks)

(e) State three (3) exceptions to the general principle that an agent cannot delegate the authority given to him by his principal. (3 marks)

(20 marks)

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