Question
George is contracted as a salesman by Golden Gate Technologies (GGT) Ltd, which develops software that make businesses more efficient in their workflow. Golden Gate
George is contracted as a salesman by Golden Gate Technologies (GGT) Ltd, which develops software that make businesses more efficient in their workflow. Golden Gate Technologies is very well known for having a good product. Georges contract specifically stipulates that he is allowed to offer discounts of up to 10% for sales but not more! Anything above 10% requires approval from his manager. One afternoon, George was approached by Brendan, who is the CIO (Chief Information Office) for Poolworths Ltd, a large supermarket company based in New South Wales. Brendan is tasked by his Poolworths with the job of buying new software to make his companys work-flow more efficient. Brendan says that he is looking to buy $2 million worth of software from GGT Ltd. George hasnt had much luck with sales in recent months and is therefore very keen to get Brendans business and promptly offers him a 15% discount. Brendan is very happy with this offer and said he would get back to George within a day. When he returns to his office, Brendan tells his colleague Justin about the offer from George. Justin is skeptical about the deal as he had never heard of such a huge discount. He even said to 1 1 Brendan that I have never heard of such a huge discount, are you sure George is even allowed to offer such a deal? I suspect he may not be allowed to do this. Brendan is adamant however, that this deal would be by far the cheapest of all the offers he has received and that Poolworths should therefore go ahead with the deal. Brendan emails George that he accepts his offer and that he will come to GGTs offices to sign the contract the following week. When Brendan arrives at GGTs company offices the following Monday, the Manager of Golden Gate Technologies refuses to accept the deal, sign the contract or hand over the software, saying that George had no authority to give a 15% discount. Advise Poolworths Ltd as to their legal position citing relevant legal authority. You must assume that all facts can be proved in court.
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