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Hamish has read news about a company named Zamberro Pty Ltd, which signed a contract with Adone Bakery located in Maddington to supply fresh bakery products for its upcoming function. The company has a constitution. Clause 15 of the constitution states that Zamberros directors cannot sign a contract without taking consent of the members if the price of the contract is more than $10000. Adone had previously dealt with Zamberro twice and supplied cakes and cookies for its year end functions in 2022 and 2021. That is why Adone signed a contract with Zamberro with the contract price of $11000. A director of the company named Beatrice signed the contract with Adone Bakery in late August who was removed from the office afterwards by the company. The new director named Ted (who is also the Managing Director of the company) does not like the sound of Adone Bakerys owner named Bruice, when he called him for a discussion on the date and time of delivering the products. Ted does not want to perform the contract because the contract is beyond the object of the company which was established to run a business of residential property development. Adone Bakery wants to enforce the contract.

With reference to case laws and sections of the Corporations Act 2001 (Cth), advise Ted whether Zamberro could sign a contract with Adone Bakery for purchasing the bakery products and whether the contract is enforceable by Adone Bakery.

Use the 4-step-process: Step 1 Area of Law Step 2 Principle of Law and Cases Step 3 Apply the Law and Cases Step 4 Conclusion

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