LAW6000 Assessment 2 Individual Case study directors before entering into the contract and the other directors are unaware of the existence of the contract. The cost of the repair is $50 million, leaving Rapid Stop with assets of only $75 million. As at the date of completion of the repair, the company taxes remain unpaid and no extension of time has been agreed to by the Australian Taxation Office. The other directors deny that Rapid Stop is bound by the contract. REQUIRED: With the aid of the IRAC legal problem solving approach advise Rehan in detail whether he has breached the insolvent trading provisions of the Corporations Act 2001 (Cth) including whether he could successfully raise any defence. (20 Marks) Question 5 (20 marks) Simon owned a car which he advertised for sale in the local newspaper for $5,500. Pascal telephoned Simon and said that he would buy the car for $5,000. Simon said that he had changed his mind and that he was not sure that he would sell the car, but that if he did, he would want at least $6,500. After further discussion Pascal offered Simon $6,000 for the car. Simon refused to sell the car for the that price but said he would keep his offer open for five days. The next day Simon met an old acquaintance of his, Sheila who said she was looking for a car. After lengthy discussion Simon sold his car to Sheila for $6,500. Later that day Pascal overheard Sheila boasting about the car she had purchased from Simon. Pascal immediately rang Simon and told him that he agrees to pay $6,500 for the car. Simon replied, "I'm really sorry, Pascal, but I have already sold the car to Sheila." REQUIRED: With reference to relevant legal principles use the IRAC legal problem-solving approach to advise Pascal as to his contractual rights in respect of the car. Please explain fully, using relevant legal authorit