Question 2

Rio is the senior curator and ground manager at Noora Norra Golf Club Resort, a luxury facility in north Queensland owned by Gabba Pty Ltd. Noora Norra has been under financial pressure since the Global Financial Crisis affected the flow of Japanese tourists.

The Board cut budgets and informed Riothat he could not enter into any contracts valued at over $10,000. Despite this instruction he proceeded to negotiate a landscaping contract with Willow Landscaping that was valued at $13,000. An associated water feature cost an extra $4000.

When work commenced the CEO asked Riowhat was happening. Rioinformed him of the landscaping project but did not mention the water feature. After considering the circumstances, the CEO tells Willow to proceed. Soon after the Board understands the totality of the commitment.

Advise the Board of its rights and obligations. (5 marks) Also, use the IRAC method to answer this question.