Question 1 Peter, Aidan and Adrian are partners in an accounting firm. There is a partnership agreement which states that each partner may enter into contracts worth up to $ 10 000, but that any contract in excess of that amount requires the prior agreement of all partners.Peter and Aidan are away doing an audit when Adrian sees an advert for a set of accounting journals being sold by a local accountant, Tom, who is retiring. The set would cost in excess of $ XXXXXXXXXXif all the back issues were bought from the publisher, so Adrian thinks that the asking price of $ XXXXXXXXXXis very good, and he agrees to buy them for the firm.He also decides that because he studied surveying before he studied accounting, the firm would make money if it branched out into surveying, and so she buys a set of surveying instruments for $ 8 000 on behalf of the firm from Edgar.When Peter and Aidan return they are furious to find out what Adrian has done and refuse to accept delivery of the journals or the surveying equipment or to pay for them. Advise Tom and Edgar as to their legal position, citing relevant law.Question 2 Richard was employed selling slimming products in Victoria for Nu-Slim Pty Ltd from XXXXXXXXXXA term of his contract was that if he should leave Nu-Slim, he could not sell slimming products' in Victoria for three years. In 2014 he registered a company called Fat-Away Ltd. Richard owns 99% of the shares. The other 1% is owned by his sister, Frances, whom he elected as Managing Director and CEO. Fat-Away Pty Ltd operates out of Melbourne and sells slimming powder throughout Victoria. All sales are signed by Frances on behalf of of Fat-Away Pty Ltd.Frances also signs a contract on behalf of the company, taking out a loan of $ XXXXXXXXXXfrom United Bank in 2014 as start-up capital. The company did well during 2014, 2015 and the first half of 2016, but in July 2016 was not able to repay a loan instalment of $ XXXXXXXXXXowing to the bank.Richard comes to you for advice after receiving two letters: One from Nu-Slim Pty Ltd requiring him to cease the operations of Fat-Away Pty Ltd in Victoria, the other from United Bank Ltd threatening to sue him for $ XXXXXXXXXXAdvise him, citing all relevant legal authority. You should assume the validity of the terms of the contract entered into between Richard and Nu-Slim Pty Ltd.
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here