Harry appoints Lin, as an agent, to sell his microlight aeroplane and agrees to pay her 5 per cent commission. Lin sells the aeroplane to Paul for £50,000 and Harry pays her £2,500 commission. As Paul has got the plane cheaply, he gives Lin a commission of £1,000. Lin does not disclose this to Harry.
Harry appoints Alice as his agent to sell two paintings. He tells her to sell the paintings for at least £10,000 each. Alice sells one painting to Kiri for £8,000. Unknown to Harry, Alice buys the other painting herself for £13,000, and sells it on to Prad for £18,000.
Advise Harry, who has now learnt of the £1000 Lin received from Paul, and of Alice’s dealings on the paintings.