Answer Happy

Jasmine is the owner of Jasmine Boutique Bhd, which sells various dresses. To increase the sales ofthe dresses, Jasmine had appointed Sheila, Abby and Linda as the agents. Jasmine had given theinstruction that all the agents have the right to set the selling price for the dresses, provided that thepayment of RM150 per dress must be made to her.Sheila had sold the dresses to customers for RM200 each. However, she only gave RM130 per dressto Jasmine. When Jasmine requested an explanation, Sheila told Jasmine that she sold the dresses atRM130 each because the demand for the dresses was deficient.Abby had stored the dresses in her house. One day, the roof of Abby’s house was severely leaked andmost of the dresses were dampened by rainwater. Abby was afraid that the dresses would be ruinedand unsaleable if left in that condition. Abby tried to inform Jasmine regarding that matter, but shecould not reach Jasmine who was away in New York. Abby then decided to sell each dress for RM100to prevent Jasmine from suffering further loss.
Linda had been given additional instruction by Jasmine to purchase a batik dress from Dunia BajuEnterprise, since Linda is a close friend to the owner of Dunia Baju Enterprise. Jasmine had specificallytold Linda not to purchase the batik dress for more than RM1,000. However, Linda purchased the batikdress for RM1,500. Jasmine was furious but nevertheless approved the transaction.By virtue of the Contract Acts 1950 and decided case laws, advise Jasmine as to whether Sheila hadbreached any agent’s duty to Principal, and also whether Jasmine is bound by the agency contracts withAbby and Linda.
(30 marks) (please answer with an explanation, it has 30 marks.)