Alex, Belinda, Cassandra, Davina and Edward are enthusiast stamp collectors and want to start an online business that buys and sells historical stamps from around the world. They decide to set up a company to do this. All five agree to put in $5,000 each to buy equal shares in the company. Alex and Belinda are assigned to put in an application to ASIC to register a company called Sydney Stamps Pty Ltd (Sydney Stamps). Cassandra is to look into the possibility of getting a web design company to design a website and get a quote. She visits Web Creations Pty Ltd in George Street, Sydney, and the salesman spends some time showing her various web design packages. Cassandra 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 25 per cent sale on that package, but that it finishes at 6 pm that day. Cassandra excitedly calls Alex from the store to get his thoughts, as Alex has been the driving force behind starting the business. He says Yes. Lets do it. Cassandra signs the contract on behalf of Sydney Stamps and the five directors, then and there. The following week, Alex and Belindas application is successful and the company is registered with all five as directors. However, at their first board meeting, Belinda, Davina 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.