In 2016, Georgina opens a kitchen design firm in Bathurst. The business is a sole proprietorship, not a company. Georgina does excellent work for her clients. She does the designs as well as actually completing decorating kitchens in peoples homes. Among her clients are William and Mary, for whom she has done several projects. They have always admired her artistic ability and her skill in doing the work in their house. In 2019, Mary decides that she doesnt want the stress of running her business, so sells it to Tom, who is another kitchen designer and who owns a business called Bathurst Kitchens. However she stays on as an employee of Toms. One day, William phones Georgina and asks her to come round to his house with ideas for a new barbeque area. Georgina visits William and Mary and discusses how they would like the barbeque to look. She does not tell William and Mary that she now works for Tom. William and Mary are very impressed by her design and agree to the quotation of $ 10 000 for the work given by Georgina. On the day appointed for the work to begin, Tom arrives at William and Marys house and tells them that he will do the project. They refuse to let him begin, saying that they had a contract with Georgina, not Tom, but Tom says that Georgina is just an employee of his, that he is does all projects for his business and demands that he be paid the $ 10 000 as agreed.

Tom has another employee, Ben. Ben is responsible for buying supplies which are used by Toms business. Tom asks Ben to source 15 kitchen cupboards which Tom needs for a project. Ben visits Bathurst Cabinets, whose sales manager, Cathy, tells him that she can sell him the cupboards for $ 30 000. After his meeting, Ben is waiting in a queue at a restaurant, and sees Gordon, an old friend. Ben and Gordon tell each other what they do for a living, and it turns out that Gordon has a share in a partnership that makes cupboards. When Gordon finds out that Ben is looking for cupboards, he says Please give me the order, our business is really struggling I can make them for $ 37 000. Ben wants to do the best he can to help his friend and signs an order for the cupboards. They are delivered to Bathurst Kitchens, and Tom pays Gordon. Subsequently, Tom runs into Cathy at an industry event, and is both surprised and angry when says Im sorry I couldnt help you on your last order I thought the price of $ 30 000 I was asking was very good.

Next door to the premises of Bathurst Kitchens there is a building firm called General Construction, owned by Richard. One day, Tom has hears a knocking at the door. A truck driver tells Tom that he has a load of 500 bags of cement for Richard, but that his premises are locked up. Tom remembers that Richard has gone on holiday for a week, but does not have his phone number. It is beginning to rain, so rather than let the cement bags become waterlogged, he phones Edgar, manager of a nearby storage facility and rents space for the bags to be stored. When Richard returns from holiday, he finds an invoice for $ 1000 from Edgar in the mail, being the amount it cost to store the bags. Richard returns the invoice to Edgar, saying I didnt authorise storage so I am not paying this. He tells Edgar to send the invoice to Tom, and Tom has now received it.

Advise Tom as to his legal position in relation to each of these three fact situations. In ILAC method