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question

Baffin signed a contract to purchase manufacturing machines with Safi Ltd. on behalf of AZX Pty Ltd. in 2020. The contract price was $200,000, which was to be paid in twenty years. The company was registered in June 2021.

Baffin did not have any contact with the directors and members of AZX Pty Ltd. as he was away for the last few years. The directors, meanwhile, searched for modern machines needed for a new factory of the company. Finally, in early 2023, directors of AZX Pty Ltd. decided to purchase new machines with a cheap price on behalf of the company. Baffin has recently received a written agreement from the vendor, Safi Ltd. of the manufacturing machines in which he put a signature as the agent of the yet to be formed company in 2020.

The vendor, Safi Ltd. made a legal demand for the price of the machines from Baffin. In the notice, the vendor claimed that Baffin must pay the price of the machines as Baffin had the intention to make secret profit by purchasing them from him. This is because the machines had to be in fact purchased by Baffin, who agreed to purchase the machines signing an agreement for sale. Facts suggest that rather than purchasing the machines for himself, Baffin purchased the machines for the yet to be formed company, AZX Pty Ltd. His intention was to avoid increased price of the machines.

Baffin did not want to comment on this since he did not want this to expose to anyone. Members of AZX Pty Ltd. think that they should remove Baffin as a director or seek remedies from Baffin. Baffin thinks that he is not liable to pay the price of the machines as he purchased the machines for the company.

REQUIRED:

1. With reference to case laws and sections of the Corporations Act 2001 (Cth), advise whether Safi Ltd can enforce the contract price of the machines against Baffin and whether AZX Pty Ltd can claim anything from Baffin. use citation for the following answer

youtousethe4-stepprocess,the4stepsare:

• Step1:Introducetheareaofthelaw
• Step2:Discusstheapplicable lawtosolveandquote relevantcasesandthe sectionsofthe

CorporationsAct2001(Cth)whereapplicable.

• Step3:Apply thelawto thefactsto resolvetheproblem.
• Step4: Concluded