Question

In: Accounting

Aaron acted as an agent and purchased some goods on behalf of Martin at RM100,000. Later,...

Aaron acted as an agent and purchased some goods on behalf of Martin at RM100,000. Later, seller of goods was informed by Martin’s wife that her husband passed away. George then offered the seller RM200,000 for the same goods. Can seller sell to George, or is seller bound to sell to Aaron? State the legal implications.

Solutions

Expert Solution

As per the law the agent acts on behalf of principal and it is presumed that he has given his consent and ratification to the rights of the agent with bona fide parties.

Now the representatives of the principal have some claims upon the assets of the principal. Since in this case the goods have been purchased by the agent it becomes the property of the principal and his death even after the purchases cannot revoke the sale agreement which was entered on.

Seller informing principal's wife will not have any impact on the sale agreement entered with the agent and seller will not be able to sell the same goods to George and is bound to sell to Aaron.

Aaron may file a civil suit against the seller for breaching the sale contract.

ekkarill92 answered 2 years ago
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