Situation and refuses to pay commission

Assignment Help Other Subject

Reference no: EM13905326

Paul and Paulina own a private limited company known as "Permata Gemilang Sdn Bhd". The company's nature of business is to sell poultry products like fresh chicken meat and frozen foods. Paulina has appointed Jack as the company's agent to sell their poultry products in Johor Bahru. Normally, the estimated profit from the transaction will be around RM600-RM800 per sale and purchase. The agency contract has never been in written form, but mainly by verbal promise of the Company to pay commission amounting to 25% from the profit gained by Jack. It is agreed that Jack is not the company's salaried employee.

On 23/12/2013, Jack was instructed to sell the company's product in Johor Bahru for the estimated value of RM2,000.00. While en route to his destination, Jack realized that the products began to produce a stench and rotten smell. To his worry, he checked the product and found that some of them were already rotten. To avoid further loss, Jack conducted car booth sales of the remaining poultry products to other people at cheaper price. The cumulative profit is only RM240.00.

Paulina is upset with the situation and refuses to pay commission to Jack despite taking away the profit (RM240.00) from him. She claims that Jack should not have disposed the goods without her permission. On the other hand, Jack responds that Permata Gemilang would suffer more loss if he did not sell anything, and continuing the journey will cause more damage to the products.

Answer all the arising issues in the light of Agency Law in Malaysia. Refer to related provisions in the Contract Act 1950 and case laws (if any) as supporting authorities.

Reference no: EM13905326

Questions Cloud

Elements of misrepsentation of facts : Explain elements of misrepsentation of facts under the Malaysian Contract Law. Can Dato Adlan initiate legal action against Laguna Developer? Justify your answer with reference to case laws and provision of the Malaysian Contract Act 1950.

Calculate the amount of revenue or expense : For each of the following items, calculate the amount of revenue or expense that should be recognized on the income statement for Ryco Co. for the year ended December 31, 2013:

At what rate did she spend her money : Nata spent $28 on 2 DVDS. At this rate,how much would 5 DVDS cost? At what rate did she spend her money

Equal profit sharing throughout the business : On 1/1/2014, Adriana , Mary and Amy agreed to incorporate a partnership known as "AMA" to manage their business of selling fruits, vegetables and other organic stuffs under the label "Segar Sentiasa". They agreed to inject equal capital of RM10,00..

Situation and refuses to pay commission : Paulina is upset with the situation and refuses to pay commission to Jack despite taking away the profit (RM240.00) from him. She claims that Jack should not have disposed the goods without her permission.

Is an assets initial or cost basis simply its purchase price : Is an asset's initial or cost basis simply its purchase price? Explain. Compare the basis of property acquired via purchase, conversion from personal use to business or rental use, a nontaxable exchange, gift, and inheritance.

Valley company adjusted trial balance on august : Valley Company's adjusted trial balance on August 31, 2013, its fiscal year end, follows.

Calculate the gross profit and cost of goods sold : Calculate the gross profit and cost of goods sold for MB Calculate the selling price that must be set for this new product if its gross profit ratio is to be the same as the average achieved for all products for fiscal 2013 From a management viewp..

Explain doctrine of equity and highlight eight maxims : Equity remains an unwritten source of law and all that exist in writing are the maxims of equity. Explain the doctrine of equity and highlight eight maxims of equity.

User Account

All Pages