Tony is an accountant skilled inpreparingbudgetsandcashflow statementsfornewbusinesses.On 20 March 2019, he is hiredby twoformeruniversity friends, Mark and Grahamto preparebudgetsand cash flows for a new companythat is to be set up, to be called Silvana Pty Ltd.

Tony goes to the printer ABC Printing Ltd (ABC) on 21 March 2019 and orders stationery for the proposed new company and signs on behalf of the as-yet-to-beincorporated company. Tony then prepares the budgetsandcashflow statementshowever is notpaid for his work by Mark and Graham. The new company, Silvana Pty Ltd, is registered on 30 March 2020 2019with its own Constitution.

Silvana Pty Ltd immediately begins to operate as a commercial printing business withMark and Graham as its directors.On registration, Mary, Mark's wife is appointed as company secretary.By 21 April 2019, the stationery which Tony originally ordered from ABC, has still not been paid for. Tony also is still waiting for payment for his work.

The company's constitution provides that contract documents may be executed without a common seal but they must be signed either by both of the directors, or by one of the directors and the company secretary. On 30 May 2019, Mary decides to order a new company car under a lease in the company name for her own use as she is tired of driving to clients using her own car.The lease reflects current market prices. No payments have yet been made on the car lease.

Mary also decides to purchase $10,000 worth of photocopying paper which PaperCo Pty Ltd is selling at a greatly reduced price for a short period of time, and also employs a new personal assistant for herself to "ease her workload". When Graham discovers what Mary has done he refuses to pay for the bills and tells her that she will be personally liable. She resigns immediately.

(a)Discuss whether Silvana Pty Ltd may be liable for any of the contracts entered into by Mary. If not, how can Mary be held liable?

(b) Examples of cases for question (a)?