Heading 2 Two years ago, Daisy and her sister Rosey incorporated a company with the name Jerky Delite Limited, Daisy held ninety-nine shares and Rosey the remaining one share. Daisy was the sole director and the one responsible for the overall management of the company. Rosey was the company secretary and was responsible for preparing the meals. They were the only two employees of the company. The company was doing well until Rosey sold a contaminated jerked chicken meal to Teddy, a customer which resulted in him being hospitalized. Teddy has decided to take legal action against Daisy, Rosey and the company. Prior to the incorporation of Jerky Delite Limited, Daisy and Rosey had signed a contract on behalf of the company for the supply of a large quantity of chicken and seasoning, from Spicy Ltd. The chicken and seasoning was supplied to the company after incorporation and was consumed. The Company is presently experiencing difficulties in paying for the supplies. Spicy Ltd is contemplating suing Daisy and Rosey, who are contending that the company had since ratified the contract on incorporation. Rosey is contemplating forming a company by the name, Jerkie Delight in the next couple of months when she goes on retirement. Advise Jerky Delite Limited in response to the questions below 1. Identify the main legal issues in the scenario above: 2. Explain the legal principles relevant to the issues identified above supporting your answer with one case for each principle and where relevant sections of the Companies Act: 3. Apply the legal principles explained above to the facts of the scenario given