Question
Jackie enters into a contract to purchase a car from Collectibles-R-Us Motors Pty Ltd for $120 000. Anton, a salesperson, signs the contract on behalf
Jackie enters into a contract to purchase a car from Collectibles-R-Us Motors Pty Ltd for $120 000. Anton, a salesperson, signs the contract on behalf of Zoom Motors Pty Ltd. In terms of the constitution of Zoom Motors Pty Ltd, any contract for more than $100 000 requires prior approval of the company in general meeting. Anton did not obtain the prior approval of the general meeting for this contract. Sandra is desperate to own this very rare vehicle and offers Anton $135 000 for the car. Can Jackie enforce the contract that she made against Collectibles-R-Us Motors Pty Ltd?
a. No, because the contract is for more than $100 000 and the general meeting did not approve the contract.
b. No, because only directors have the power to manage the affairs of a company and make contracts on behalf of a company.
c. Yes, because Jackie is entitled to assume that Anton had properly performed his duties
d. No, because the contract was not signed by two directors and the seal was not affixed to the contract, as required in terms of s 127 of theCorporations Act 2001(Cth)
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