Jan 2018 Q3 - IT IS FOR STUDY PURPOSE PDF

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Jan 2018 QThe issues are on whether there is breach of agent `s duty where an agent received secret profitThere is an issues of Mr. Greedy making secret profit when Bina SDN BHD discover that Mr. Greedy has received a commission of RM 2,000 from squatters.The law imposes a duty on an agent not to ma...

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Jan 2018 Q3 The issues are on whether there is breach of agent `s duty where an agent received secret profit There is an issues of Mr. Greedy making secret profit when Bina SDN BHD discover that Mr. Greedy has received a commission of RM 2,000 from squatters. The law imposes a duty on an agent not to make secret profit. In this question, the secret profit made by Mr. Greedy is in the form of payment of a secret, commission by a 3rd party I.e., squatters. The secret profits mean that the commission is received without knowledge of principle, when an agent is found to be making a secret profit, section 169 states that the principle can recover the bribe from the agent. In the case of Tam Klong Hwa v Andrew S.H Chong (1974) 2MLJ 188, the court allowed the principle to recover the profit made by agent. Bina SDN BHD can recover the amount of RM 2,000 commission paid by squatters to Mr. Greedy. Bina SDN BHD also may refuse to pay commission or remuneration to the agent. In case Andrews V Ramsay and Co (1903) 2KB 635, the court allowed the principle to recover both the secret profit made by the agent and the remuneration that the principle paid the agent. In the case Bina SDN BHD was not pay yet the Mr. Greedy commission RM 1,000 for each settlement that he made. Section 168, provides that if the principle doesn`t like the agent receiving secret profit then principle may repudiate the contract that has been entered into by the agent on his behalf. In this question Bina SDN BHD can repudiate the contract between Mr. Greedy if Bina SDN BHD doesn`t like Mr. Greedy receive a secret profit from squatters. Bina SDN BHD also can dismiss Mr. Greedy as an agent because he breach the contract consequent from receive commission from squatters. The principle may sue the agent and third party for damages. This is for any lose he suffered due to entering of the contract. In case Mahesan V Malaysian Govt. Officers Cooperative Housing Society Ltd (19978) 1 MLJ 149. The respondent was facing a loss because the agent didn`t tell the respondent about actual price when vendor buy. The court held that the respondent could recover either one of these a) The bribe money b) The actual loss suffered by the respondent as a result of entering into the contract In the case of Bina SDN BHD, it is likely that this requirement to be fulfil. Since Bina SDN BHD have a right not to pay the commission of Mr. Greedy because he was breach the contract between them by receiving the commission from third paty....