Law of Agency

QUESTION 2

a) On 1 January 2012, Dato Gopal registered himself and Miss Yya, a minor under the Registration of Businesses Act 1956 as trading in a partnership business under the name of Gopal & Yaya Trading. They both met Mr.Adudu, a representative of Tan Sri Atan’s company, Dato’ Gopal held himself out to be a partner of Miss Yaya in a jewellery business. Due to this representation, business commenced between the parties. Later, on 15 January 2012, goods were supplied to Miss Yaya who paid her own money to them for settlement. However, Dato’ Gopal now refused to reimburse her and denies that Miss Yaya is his agent.

Miss Yaya is very upset and seeks your advice (15 marks)

b) The Latin Maxim Delegates non Potest Delegare was described in the case of De Bussche v Alt (1878) 8 ChD 286 to mean that an agent is not permitted to delegate his duties or powers to another person.

Briefly explain four (4) exceptions to this maxim and support your answer with relevant statutory provisions and decided cases. (10 marks)

ISSUE (a)

Whether Dato Gopal can denies Miss Yaya as his agent and refused to reimburse. On 1 January 2012, Dato Gopal had registered himself and Miss Yaya as his Jewellery business partner. Thus, by this case, it can be seen that Dato Gopal (the principal) had appointed Miss Yaya as his agent through Express Appointment which is Dato Gopal already registered under Registration of Business Act 1956. Miss Yaya acts as a commission agent to Dato Gopal and he as a principal. A commission agent is an agent who solicits and procures business from potential customers on behalf of one or more principals, usually against payment of a percentage of the realized sales revenue as commission. However, on 15 January 2012 Dato Gopal refused to reimburse and denies that Miss Yaya is his agent after Miss