QUESTION 2

Anne and Ben formed a company to acquire and develop certain land. The board of directors was made up of Anne, Ben and two other people. The development of the land was left to Anne who, with the knowledge of the board of directors, acted as managing director although she had never been formally appointed to the position. Anne employed Xco, a firm of architects, to draw up plans for the development of the land, but when they presented their bill for payment the company refused to pay, arguing that it had not authorised Anne to employ them.

REQUIRED:

Advice Xco on whether they have a case that they can put forward as to why they should be paid and what that case is.

Note: Follow IRAC Method and Apply 2 Relevant Cases.