Question
Alex is the managing director of Sports Ltd, an Australian company in Sydney, which is in the business of constructing sporting facilities for all types
Alex is the managing director of Sports Ltd, an Australian company in Sydney, which is in the business of constructing sporting facilities for all types of sport.Alex has special expertise in preparing tender bids on behalf of Sports Ltd and has been very successful over the years.
Having successfully completed several construction projects in the Olympic Games in Sydney, Sports Ltd prepared a tender contract in June 2011 to build a football stadium for the London Olympic Games.Alex is responsible for the cost and profit analysis for the tender contract and for preparing and lodging the tender bid on behalf of Sports Ltd.The closing date for the lodgement of tenders was 1 August 2012.
Alex realised that this is a highly profitable tender project.In July 2011, Alex incorporated a company called Games Pty Ltd in which he is the sole shareholder.He appointed his old friend, Bob, who is an experienced builder, as the managing director of the newly formed company.Alex encouraged Bob to make ready a tender, on behalf of Games Pty Ltd, for the company to build the football stadium for the London Olympic Games.Bob successfully tendered for this construction contract on behalf of Games Pty Ltd in July 2012, based on the financial information supplied by Alex.
Games Pty Ltd won the construction tender, as its bid was lower than Sports Ltd, and is awarded the construction contract by the London Olympics Committee.Since winning the tender, Games Pty Ltd has successfully completed construction of the football stadium and has made an overall profit in the sum of $300,000.
The directors of Sports Ltd have recently become aware of Alex's participation in the successful tender bid by Games Pty Ltd.
(a) Advise Sports Ltd whether the company can sue Games Pty Ltd and recover the profit of $300,000 made by Games Pty Ltd.Your answer must be supported by relevant precedents.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started