Question
harry is the managing director of techno pty ltd. harry accepted a very large order, to the value of $150000 for the supply of computers
harry is the managing director of techno pty ltd. harry accepted a very large order, to the value of $150000 for the supply of computers to dodgy retailer pty ltd. the purchase order was placed by dodger the director of dodgy retailer pty ltd. the computers were delivered, on credit, to dodgy pty ltd which later became insolvent and collapsed. it appears that harry, and everyone in the technology business, knew that dodger was a bad credit risk.
two weeks after accepting the order of computers, dodgy retailer Pty Ltd went into liquidation without ever paying Techno pty ltd for the computers.
Advise fully, with reference to legal authority whether:
(1) can dodger be held liable for the unpaid debt of dodgy retailer pty ltd? discuss fully with reference to common law legal principles only; and
(2) will your answer be different under the corporation Act 2001? explain
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