1500 words Question 1 – 10 Marks Michelle and Tim are passionate about motorbikes. In fact, they own...

80.2K

Verified Solution

Question

Accounting

1500 words
Question 1 – 10 Marks
Michelle and Tim are passionate about motorbikes. In fact, theyown a company called Motorbikes Pty Ltd. Michelle is a Director andTim is the company secretary. They buy and sell motorbikes andrepair them.
John wishes to sell his motorbike. John approaches Tim and Timagrees to purchase John’s motorbike for $5,000. Tim and Michelleboth sign the contract to purchase John’s motorbike.
Two days later, Michelle thinks they have paid too much forJohn’s motorbike and wants to get out of the contract.
Is Motorbikes Pty Ltd bound by the contract? Provide reasons foryour answer. You must cite relevant Australian case law and theCorporations Act 2001 (Cth).
Question 2 – 15 Marks
Gerard and Sylvia love cakes and have recently decided to buy acake shop from George.
Gerard and Sylvia register a company “Cakes Pty Ltd” with theAustralian Securities and Investments Commission. Gerard is listedas a Director and his mum, Sarita, is listed as the companysecretary.
On the day of signing the contract to buy the cake shop fromGeorge, Gerard stamps the contract with the Cakes Pty Ltd companyseal and signs as a witness. The other witness is Sylvia.
A few days pass and George thinks he should have not sold hiscake shop. He now wants it back.
Is George bound by the contract? Provide reasons for youranswer. You must cite relevant Australian case law and theCorporations Act 2001 (Cth).

Answer & Explanation Solved by verified expert

3.6 Ratings (355 Votes)

Question 1 Issue In this instance of Motorbikes Pty Ltd and John it is clear that there is a problem with the contract involving the parties John who is the owner of the motorbike approaches Tim who is the secretary of the company which they own with Michelle Tim agreed to pay 5000 for the motorbike and after the agreement he and Michelle sign the contract to purchase the motorbike Later Michelle who had signed the contract want to get out of the contract thinking that they had paid much for the motorbike Therefore from the above case could Michelle be breaching the contract Corporations Act 2001 Cth Law As defined in the introduction a contract is said to be an agreement between two or more parties which is legally enforceable In our case we have the parties as Michelle and Tim who are the Motorbike Pty Ltd owners and John the motorbike owner Also both sides assume a legal obligation which they must complete When one party to the contract fails to perform the legal obligation it has agreed to legal issues involving contracts arise In cases where a party breaches a contract the other party can sue on the basis of money damage or may plead with the court to request the other party to honor the promise When the contracts are not written clearly they become a source of legal disputes AGC Advances Ltd v McWhirter 1977 1 BLR 9454 Various terms are frequently used when solving issued related to Contract law They include Contract According to the See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

1500 wordsQuestion 1 – 10 MarksMichelle and Tim are passionate about motorbikes. In fact, theyown a company called Motorbikes Pty Ltd. Michelle is a Director andTim is the company secretary. They buy and sell motorbikes andrepair them.John wishes to sell his motorbike. John approaches Tim and Timagrees to purchase John’s motorbike for $5,000. Tim and Michelleboth sign the contract to purchase John’s motorbike.Two days later, Michelle thinks they have paid too much forJohn’s motorbike and wants to get out of the contract.Is Motorbikes Pty Ltd bound by the contract? Provide reasons foryour answer. You must cite relevant Australian case law and theCorporations Act 2001 (Cth).Question 2 – 15 MarksGerard and Sylvia love cakes and have recently decided to buy acake shop from George.Gerard and Sylvia register a company “Cakes Pty Ltd” with theAustralian Securities and Investments Commission. Gerard is listedas a Director and his mum, Sarita, is listed as the companysecretary.On the day of signing the contract to buy the cake shop fromGeorge, Gerard stamps the contract with the Cakes Pty Ltd companyseal and signs as a witness. The other witness is Sylvia.A few days pass and George thinks he should have not sold hiscake shop. He now wants it back.Is George bound by the contract? Provide reasons for youranswer. You must cite relevant Australian case law and theCorporations Act 2001 (Cth).