Reference no: EM13493682

John is the owner of First Class Education Pte Ltd ("FCE"). FCE is the exclusive licensee of an education programme "Score Well" and has opened 3 "Score Well" centers in different parts of Singapore.

John's son, Derrick, is 22 years old. Derrick wanted to learn the business model of FCE, in particular, the marketing strategies and hence, volunteered to work in one of the centers.

John agreed to Derrick's suggestion to work in the "Score Well" center in Jurong and offered him the position of an "Executive Manager". John ordered the printing of name cards for Derrick.

During the first week of work, Derrick took the public transport to work from their home in Pasir Ris. The trains and buses were often crowded. Derrick felt that it would be more comfortable to ride a motor-cycle to work. However, his parents were against him owning a motor-cycle.

John specifically told Derrick that he was to take public transport and had to work his way up. He further told Derrick that his role was in sales and marketing of "Score Well" programme to schools and he was not authorised to sign any agreement on behalf of FCE.

Meanwhile, Derrick visited a showroom, Free-Rider Pte Ltd, with his best friend, Frank, to look at the latest motor-cycle models.

Derrick was interested in one of the motor-cycles and started checking the details. The sales manager, Harvey, attended to Derrick and gave him the brochure with all the necessary information.

Frank told Harvey that Derrick was the "Executive Manager" of "Score Well". Derrick handed his name card to Harvey. Harvey was pleasantly surprised and replied that his son went to the "Score Well" center in Jurong which was always packed with students.

Derrick mentioned that he was buying a company vehicle to enable him to move around easily during work. Derrick agreed to buy the model recommended by Harvey, paid the deposit of S$2,000.00 and signed the contract on behalf of FCE.

(a) Analyse and discuss whether the contract between FCE and Free-Rider Pte Ltd is valid and binding. In your analysis, discuss whether Derrick had breached any duties and if yes, give examples of duties that have been breached.

(b) Advise John on the approaches that a principal could adopt to limit an agent's authority. Discuss which is the most pragmatic approach for John and explain it to John. Demonstrate well developed written proficiency.

SECTION B

Prepare a video recording of the presentation of at least 3 minutes but not exceeding 6 minutes.

Note: Students should select only ONE (1) question (out of the three questions in Section A above) for the video presentation. There is no need to show the Powerpoint slides in the video.

SECTION C

Prepare a set of Powerpoint slides upon which the video presentation is based.

Note: Students should select the same ONE (1) question which he/she had selected for Section B above.