Transcribed Image Text
1500 wordsQuestion 1 – 10 MarksMichelle and Tim are passionate about motorbikes. In fact, theyown a company called Motorbikes Pty Ltd. Michelle is a Director andTim is the company secretary. They buy and sell motorbikes andrepair them.John wishes to sell his motorbike. John approaches Tim and Timagrees to purchase John’s motorbike for $5,000. Tim and Michelleboth sign the contract to purchase John’s motorbike.Two days later, Michelle thinks they have paid too much forJohn’s motorbike and wants to get out of the contract.Is Motorbikes Pty Ltd bound by the contract? Provide reasons foryour answer. You must cite relevant Australian case law and theCorporations Act 2001 (Cth).Question 2 – 15 MarksGerard and Sylvia love cakes and have recently decided to buy acake shop from George.Gerard and Sylvia register a company “Cakes Pty Ltd” with theAustralian Securities and Investments Commission. Gerard is listedas a Director and his mum, Sarita, is listed as the companysecretary.On the day of signing the contract to buy the cake shop fromGeorge, Gerard stamps the contract with the Cakes Pty Ltd companyseal and signs as a witness. The other witness is Sylvia.A few days pass and George thinks he should have not sold hiscake shop. He now wants it back.Is George bound by the contract? Provide reasons for youranswer. You must cite relevant Australian case law and theCorporations Act 2001 (Cth).