Hi tutor,

I need your help on question regarding law agency relationship.

Craft Works is a local not-for-profit organisation which sells craft products made by people with disabilities. Craft Works recently appointed Donald as a sales account manager, and issued him with an appointment letter that stated as follows:

"Craft Works appoints you as a sales account manager, and you are hereby authorised to represent the organisation in selling our products."

Mandy is the human resource manager of a company called HSL, and she contacted Craft Works as she wanted to use its products as corporate gifts.

Donald arranged for a meeting with Mandy to be held at HSL's corporate office. On the day of the meeting, Donald took a cab to HSL's premises to meet with Mandy. After some discussion, Mandy decided to purchase $3,000 worth of products from Craft Works. She proceeded to sign a contract with Donald, and also handed over $3,000 in cash to Donald as full payment under the contract.

Unknown to Mandy, Craft Works had an internal policy (which has been communicated to Donald when he joined the organisation) that all sales account managers are not allowed to receive cash from customers. Instead, electronic payment should be made to Craft Works' corporate banking account. Donald did not inform Mandy of this policy, as he did not want to make things difficult for her.

Donald thereafter deposited the cash payment (of $3,000) into his own personal banking account, and used part of it to pay for his personal credit card expenses. He intended to transfer the full amount back to Craft Works after he has received his next salary.

Question 1a) Describe one (1) way in which the agency relationship between Craft Works and Donald could have arisen in the above scenario. Answer with specific examples based on the above scenario. (8 marks)

Question 1b) Outline and discuss three (3) duties that Donald has breached as an agent. Answer with specific examples based on the above scenario. (12 marks)

Question 1c) Kindly state in-text citations or references related to the above case study.

Thank you.