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. 2