Wednesday, February 4, 2015

Partnership and Principal-Agent Relationship Q7

Q.
a) Ali and Bidin are partners in a construction company. Bidin entered into a contract to buy building materials from Chong. If Bidin dies before payment is made, is Ali liable to make payment to Chong. Explain. (10 marks)

b) Explain how the principal-agent relationship may be created. (10 marks)

(20 marks, 2013 Q7)

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