Question
eBBY Ltd is an importer and distributor of boutique beers. The Managing Director is Claire. The company has a constitution which states that any purchase
eBBY Ltd is an importer and distributor of boutique beers. The Managing Director is Claire. The company has a constitution which states that any purchase of beers over $20,000 requires board of directors' approval. Last month Claire signed a contract to purchase beer for $25,000 from Tasty Fresh Pty Ltd. The other directors do not like the beer and refuse to accept it on the grounds that Claire lacked authority and because she did not get approval from the board. Discuss whether eBBY Ltd can refuse to pay Tasty Fresh Pty Ltd for the beer. Use case law and relevant sections of the CA.
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