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Kevin decided to upgrade and refurbish the technicians workrooms at a cost of $200,000 including installing new bathrooms and shower facilities for many of the

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Kevin decided to upgrade and refurbish the technicians workrooms at a cost of $200,000 including installing new bathrooms and shower facilities for many of the staff that ride their bikes into work. Kevin signs a contract with Office Upgrades Pty Ltd "for and on behalf of Hardware Enterprises Pty Ltd." The work has not yet been completed but HEPL have paid a non-refundable deposit of $20,000. Bronwyn claims that she expressly told Kevin in a directors' meeting not to go ahead after he obtained a quote because they could not afford it. Kevin confirms the discussion but says he had since changed his mind and went ahead with it anyway because the company needed to provide a welcome workplace and encourage environmentally friendly transport options. Office Upgrades Pty Ltd had previously dealt with Kevin but only for purchases of office furniture such as desk chairs of no more than $500 purchases at a time. Advise the directors whether HEPL are bound by the contract with Office Upgrades Pty Ltd. (10 marks - 30 minutes)

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