Ajay, Bernice, Celina, Debbie and Edward are enthusiast stamp collectors and want to start an online business that buys and sells historical collector-item stamps from around the world. They decide to set up a company . All five agree to put in $5,000 each to buy equal shares in the company. Ajay and Bernice are assigned to put in an application to ASIC to register a company called 'Stamps R Us Pty Ltd' ('Stamps R Us'). Celina is to look into getting a web design company to design a website and get a quote. She visits Webtastic Pty Ltd in Pitt Street and the salesman spends some time showing her various web design packages. Celina is very impressed with the 'Super Delux' package but is a little concerned about the $8,000 cost. The salesman informs her, however, that they currently have a 40 per cent sale on that package, but that it finishes at 5 pm that day. Celina excitedly calls Ajay from the store to get his thoughts, as Ajay has been the driving force behind starting the business. He says 'Yes. Let's do it'. Celina signs the contract on behalf of Stamps R Us and the five directors, then and there.

The following week, Ajay and Bernice's application is successful and the company is registered with all five as directors. However, at their first board meeting, Bernice, Debbie and Edward are unhappy about the cost of the website package and refuse to accept the contract, saying the basic package, at a quarter of the cost, would have been sufficient.

Advise the parties/entites of their respective legal rights and liabilities, referring to relevant legislation and cases.