Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tony enters into a contract to purchase a car from Rip-off Motors Pty Ltd for $150,000 (it is a Porsche once owned by Prince William).The

Tony enters into a contract to purchase a car from Rip-off Motors Pty Ltd for $150,000 (it is a Porsche once owned by Prince William).The contract is signed by Peter on behalf of Rip-off Motors Pty Ltd.Peter is a salesperson employed by Rip-off Motors Pty Ltd. Rip-off Motors Pty Ltd's constitution provides that any contract in excess of $100,000 must be in writing, signed by two directors with the company seal affixed thereto. Julia, who is a Prince William fan, has approached Rip-off Motors Pty Ltd and has offered more than Tony to purchase the car.Can Tony enforce the contract against Rip-off Motors Pty Ltd?

Select one:

a.Yes, provided Tony was not aware of the limitations set forth in Rip-off Motors Pty Ltd's constitution, he can assume that Rip-off Motors Pty Ltd's constitution has been complied with.

b.Yes, because it doesn't matter that two directors didn't sign the contract and the seal was not affixed as provided in the constitution.Tony can always assume that Rip-off Motors Pty Ltd's constitution has been complied with.

c.No, because an employee cannot enter into a contract on behalf of a company.

d.No, because the contract was not signed by two directors and the seal was not affixed therefore the contract is invalid.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Smith and Roberson Business Law

Authors: Richard A. Mann, Barry S. Roberts

15th Edition

1285141903, 1285141903, 9781285141909, 978-0538473637

More Books

Students also viewed these Law questions