Question
Faith, George, Huw and Ingrid are partners in the pet hospital. All members have the right to participate in running the company. The members agreed
Faith, George, Huw and Ingrid are partners in the pet hospital. All members have the right to participate in running the company. The members agreed to nominate Faith as the sole representative of the company to sign a contract to purchase supplies and equipment for the hospital. This has been communicated to all regular providers of the hospital. Faith saw an advertisement from a regular supplier for a new drug in the testing phase with a good promotional policy. Faith signed a contract to buy a new batch of drugs without consulting the rest of the members. The remaining members wanted to cancel the contract to buy a new batch of drugs on the grounds that the batch of drugs had not been reliably tested and Falth had not discussed anything with the company members. Ingrid met with a new supplier who was not on the hospital's regular supplier list and had not been informed that Faith was the only company representative authorized to sign the contract. The supplier offered Ingrid a batch of drugs that the hospital regularly used at a very good price. Ingrid has signed a contract with a new supplier. When she learned of the incident, Faith was extremely angry and wanted to cancel the contract with the new supplier on the grounds that Ingrid did not have the authority to enter into the contract and the hospital still had 18 such drugs in stock.
Advice for the 2 contracts mentioned above?
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