Anneli, Dion, Russ decided to form a company called kids farm pty ltd. they intended for kids farm to own a small farm with cows, horses and other animals. kids farm would charge entry to the farm where visitors would be able to a[at and play with the animals, have horseback rides, milk the cows and so on.

prior to registering the company, Russ had lunch with his friend Bindi, who mentioned she owned a horse called Bingo that she wanted to sell.. Russ told Bindi all about kids farm and offered to purchase the horse on behalf of kids farm for $1000. Bindi agreed to the price and she believed that a contract had been formed with the company called kids farm pty ltd.

russ subsequently registered the kids farm pty ltd with the Australia securities and investments commission (ASIC). the directors of kids farm pty ltd were anneli, Dion and russ. russ held 80% of the shares issued by kids farm.

when Bindi delivered Bingo to kids farm, anneli and Dion refused the delivery. Bindi was furious and said they had to take Bingo and pay her because she had a contract of sale with the company.

(a) is Bindi correct ?

(b) if bindi is not correct, does she have any recourse?

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