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BSL165 Foundations Of Business Law

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  • Course Code: BSL165
  • University: Murdoch University

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  • Country: Australia

Question:

Ricardo is the senior curator and ground manager at Noora Norra Golf Club Resort, a luxury facility in WA owned by Gabba Pty Ltd. Noora Noora has been under financial pressure since the Global Financial Crisis affected the flow of Japanese tourists. The CEO cut budgets and informed Ricardo that he could not enter into any contracts valued at over $10,000. Despite this instruction he proceeded to negotiate a landscaping contract with Willow Landscaping that was valued at $13,000. An associated water feature cost an extra $4000. When work commenced the CEO asked Ricardo what was happening. Ricardo informed him of the landscaping project but did not mention the water feature. After considering the circumstances, the CEO tells Willow to proceed. However, the CEO is surprised to receive the bill for $17,000 when the work is completed. Advise the CEO whether the company is required to pay the bill. (You can assume that the CEO has actual authority to enter into contracts of this nature on behalf of the company)(15 marks)

Jeremy is an estate agent in the Perth inner city area. He is selling high-rise units “off the plan” for Aspirational Developments Pty Ltd. He has friends who work for other developers and becomes aware that a competing high-rise that is also selling “off the plan” has run into difficulties and is unlikely to go ahead. The result is that the units he is selling are likely to be more valuable than previously thought. Being an opportunist, Jeremy assists a friend to arrange finance so she can buy three of the units with a view to selling later at a profit that they will split 50–50. Furthermore, in return for a small payment, he informs several people who have expressed an interest in purchasing a unit of the news. Aspirational Developments learns of Jeremy's conduct and seeks your advice on whether Jeremy has breached any duty owed to it.

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