Question

Vinci is a famous artist. Three months ago, he appointed an agent, Sotheby to sell his paintings on his behalf. Recently, he found out that Sotheby had accepted a gift of RM5000 for selling his painting to Van Gogh on top of the commission he paid. Sotheby did not tell Vinci about this.

Meanwhile, Vinci has also appointed Din as his agent to sell his Volkswagen Beetle. Vinci told Din not to sell his car for a price below RM90,000. Din told Vinci that there was a buyer who was willing to pay RM88,000 for the car. Vinci agreed to sell at RM88,000 to the buyer. After deducting his commission of RM5000, Din paid RMRM83,000 to Vinci. Yesterday, Vinci discovered that the car was sold to Din’s wife but for Din to use.

Advise Vinci on the issues of breach of duties by Sotheby and Din as agents and the suitable remedies for the situations above.

Business Law

Answer 1

Both Sotheby and Din breached their duty towards their agent.

Sotheby breached fiduciary duty by not disclosing the elements and gift of the sale.

Din breached duty of avoiding conflict between his duties and personal interests when he sold the car to his own wife which is a breach of acting in the best interests of the principal.

Remedies : Vinci can sue Sotheby for the gift he received and can claim damages for breaching the faith.

Vinci can also claim compensation from Din for acting against the interests of Vinci and can claim monetary sum.