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1. Doc, a supplier of building materials entered into the following transactions: An agreement to sell some goods to longstanding friend, Ed. The contractual document,

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1. Doc, a supplier of building materials entered into the following transactions: An agreement to sell some goods to longstanding friend, Ed. The contractual document, however, actually stated that the contract was made with Ed's company. Ed Co. Although materials were delivered they were not paid for and Doc has learnt that Ed Co hasjust gone into insolvent liquidation. Doc had employed a salesman. Fitt. whose contract of employment contained a clause preventing him for approaching any of Doc's clients for a period of two years after he had left Doc' employment. Doc has found out that, on stopping working for him, Fitt has started working for a company, Gen Co. wholly owned by Fitt and his wife. and is approaching contracts he had made while working for Doc. Required: (a) identify what is meant by limited liability (b) Explain whether Doc can pursue Ed personally for the debts of Ed Co (c) Explain whether the courts will lift the veil of incorporation to allow Doc to sue Fitt for breach of his employment contract

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