Question
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, 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.
b.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.
c.No, because the contract was not signed by two directors and the seal was not affixed therefore the contract is invalid.
d.No, because an employee cannot enter into a contract on behalf of a company.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started