Q1- Ali, Betty, Carmel, Devaki and Eli are enthusiast stamp collectors and want to start an online business that buys and sells historical collector-item stamps from around the world. They decide to set up a company to do this. All four agree to put in $5,000 each to buy shares in the company. Ali and Betty are assigned to put in an application to ASIC to register a company called Stamps R Us Pty Ltd. Carmel is to look into getting a web design company to design a website and get a quote. She visits Software Designs Pty Ltd in Parramatta CBD and the salesman spends some time showing her various web design packages. Carmel is very impressed with the Super Delux package but is a little concerned about the $15,000 cost. The salesman informs her, however, that they currently have a 30 per cent sale on that package, but that it finishes at 5 pm that day. Carmel excitedly calls Ali from the store, who has been the driving force behind creating the business, to get his thoughts. He says Yes. Lets do it. Carmel signs the contract on behalf of both Stamps R Us and Ali, then and there. Eli is assigned to investigate buying some stamps that the new company can have as stock when it first launches. He visits his local stamp dealer, Charlie, of Charlies Stamps Pty Ltd, who is very keen to get Elis business. Charlie tells Eli that if the new business buys stamps from him worth over $10,000, he will give Eli a rare 1901 Australian Federation stamp, now worth around $2,000 as a personal gift to show his appreciation. Eli is excited about this. He contacts the group at their next meeting and they agree to buy $11,000 worth of stamps. However, he doesnt mention the personal gift. He goes ahead and buys the stamps and receives the Federation stamp. The following week, Ali and Bettys application is successful and the company is registered. All five become directors. However, at their first board meeting, Betty, Devaki and Eli are unhappy about the cost of the website package and refuse to accept the contract, saying the basic package would have been more than sufficient. Advise the parties of their respective legal rights and liabilities.