Question: Plastic Products Pty Ltd (PP) wants to enter into two agreements with another company, Plastic Dice Pty Ltd (PD). The first agreement is for PP

Plastic Products Pty Ltd (PP) wants to enter into two agreements with another company,

Plastic Dice Pty Ltd (PD).

The first agreement is for PP to purchase a 220-hectare property in the Southern

Highlands area of NSW from PD at a cost of $10m.

The second agreement is for PP to sell 2000 plastic dice to PD.

Assume both companies use the replaceable rules and have a common seal.

Required:

Answer the following questions:
(a) Describe the process that both companies will follow to enter into the first agreement so that it is a legally binding contract. 4

(b) Describe the process that both companies will follow to enter into the second agreement so that it is a legally binding contract. 4

(c) Is there any reason why the process followed for the first agreement might be different to the process followed for the second agreement? If so, explain this
reason.

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