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Eva owned and operated a restaurant called Spice for Bud at Mindill Beach, Darwin from 1987 until July 2023 when she sold it to her
Eva owned and operated a restaurant called Spice for Bud at Mindill Beach, Darwin from 1987 until July 2023 when she sold it to her manager Darryl. Darryl has been working for Eva's restaurant for more than a decade and is responsible for overall management of the restaurant ranging from procuring ingredients to representing Eva's business to banks and other stakeholders. In September 2023, Darryl borrowed an additional $50,000 for 3 months to upgrade the restaurant. Darryl signed the loan agreement as manager of Spice for Bud as he used to do in the past. In the meantime, Eva went to Europe for holidays retiring from business life after 36 years. When Eva returned to Darwin in February, she was approached by the lender bank to recover the loan. Eva realizes that she forgot to notify banks or any other stakeholders or even place a notice on the premises of the restaurant about the transfer of her ownership to Darryl. Darryl is going through financial hardship and is unable to repay the loan. Required: Advise Eva if the lender bank has any ground under the Law of Agency to hold her liable for the above loan by Darryl. Your answer must refer to relevant agency case laws, if any. (10 marks)
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