Question 1 (10 marks)
Steve Jones is an entrepreneur delay a difference of trade interests. He versed of a gold safety in Western Australia. Consequently he was solicitous to perpetration the opening, he flew to Perth on 6 July and invadeed into a form to buy a organization agent from Thor Mining Machinery Ltd, to be used to ordinate a ordeal stock. The form certain that the ordinate would be delivered, and cancelment of the $ 125 000 appraisement would gravitate due, on 30 July. He attested the form as follows:
Steve Jones, on side of WA Gold Exploration Ltd.
WA Gold Exploration Ltd was registered as a union by ASIC on 10 July, delay Steve as 60% shareholder. He and the other shareholders met on 11 July, to choice a table of five directors. Steve himself was not choiceed to the table, consequently although he had originally discovered the opening, he had no proof in mining operations, and so did not absence to be concerned in day to day exoteric of the union.
On 14 July, the table attested a form to alienation a expeditious of five ore trucks from Volvo Trucks (Australia) Ltd, costing a completion of $ 500 000, to be delivered on 30 September. The table as-well methodic a sub-committee to individualize the union’s technical needs, and on 25 July the table veritable the committee’s information that the union buy a ordinate from United Mining Machinery Ltd for $ 100 000. The table as-well contacted Thor Mining Machinery Ltd and told it that it would not be induction grant of the ordinate or paying for it.
Unfortunately, in mid-September it became intelligible that the gold safety was not as wide as hoped, and the table ceased trading on the basis that the union had merely $ 400 000 in effects and had accumulated $ 2 pet in liabilities. The union is consequently insufficient to pay for the trucks. Steve, who has separate effects of $ 1 pet, has now been sued for rupture of form by twain Thor Mining Machinery Ltd and Volvo Trucks (Australia) Ltd. Assume you are his allowable advisor. Prepare information for him citing liberal allowable example, as to what his allowable comcomposition is.
Question 2 (10 marks)
Simon, George, Sara and Mary were all employed by divergent IT companies. However, they felt that they could do emend if they went into trade themselves. They pooled their helpful coin and compound up a fast treaty, which ordinary that each spouse had example to invade into transactions on side of their fast, which they designated Computer Solutions. The fast operates in Sydney and provides a advantage of storing axioms for customers. The treaty states that spouses invadetain example to invade into forms of up to $ 10 000, but that any form for further than that must be received unanimously by all spouses.
George, Sara and Mary access you for allowable information in kindred to two transactions invadeed into by Simon, who had acted delayout referring end to the spouses. One was for a 50GB dense-drive, bought by Simon on side of Computer Solutions, from Sunstar Computer Hardware Ltd, costing $ 15 000. The other was for a second-hand ute, costing $ 9 000, which Simon ordered for the fast from You Beaut Ute Ltd, on the basis that the fast should sprig into the consignment trade – an fancy that the other spouses had previously uncommon. Sara had refused to confirm grant of twain the dense push and the ute and the fast has been sued by twain Sunstar Computer Hardware Ltd and You Beaut Ute Ltd. Give them allowable information, referring to statutory and case-law example.