Question
Ross and Pippa formed a company, Skyscrapper Pty Ltd, to acquire and develop certain land. The board of directors was made up of Ross, Pippa
Ross and Pippa formed a company, Skyscrapper Pty Ltd, to acquire and develop certain land. The board of directors was made up of Ross, Pippa and two other people. The development of the land was left to Ross who, with the knowledge of the board of directors, acted as managing director, although he had never been formally appointed to the position. Ross employed Goodall & Co, a firm of architects, to draw up plans for the development of the land, but when they presented their bill for payment, Skyscrapper Pty Ltd refused to pay, arguing that it hadnt authorised Ross to employ them.
(a) Advise Goodall & Co on whether they will successfully sue Skyscrapper Pty Lt to pay them. Use case law to support your answer. (8 marks)
(b) After the Goodall & Co episode, Ross and Pippa left Skyscrapper Pty Ltd and formed a partnership. They contribute $40,000 and $60,000 respectively as capital to the business. They dont have a written partnership agreement. At the end of the first year, they made a profit of $50,000. Pippa insists that her share of the profits should be $30,000 since she contributed $60,000. Is Pippa correct? Why/Why not? (4 marks)
Please use case law and statute to support your answers.
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