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LST2LBA Law Of Business Association

tag 0 Download 8 Pages / 1,817 Words tag 02-11-2020
  • Course Code: LST2LBA
  • University: La Trobe University
    icon is not sponsored or endorsed by this college or university

  • Country: Australia



Michelle and Tim are passionate about motorbikes.  In fact, they own a company called Motorbikes Pty Ltd.  Michelle is a Director and Tim is the company secretary.  They buy and sell motorbikes and repair them.

John wishes to sell his motorbike.  John approaches Tim and Tim agrees to purchase John’s motorbike for $5,000.  Tim and Michelle both sign the contract to purchase John’s motorbike. 

Two days later, Michelle thinks they have paid too much for John’s motorbike and wants to get out of the contract.

Is Motorbikes Pty Ltd bound by the contract?  Provide reasons for your answer.  You must cite relevant Australian case law and the Corporations Act 2001 (Cth).  Do not discuss contract law.


Gerard and Sylvia love cakes and have recently decided to buy a cake shop from George. 

Gerard and Sylvia register a company “Cakes Pty Ltd” with the Australian Securities and Investments Commission.  Gerard is listed as a Director and his mum, Sarita, is listed as the company secretary.

On the day of signing the contract to buy the cake shop from George, Gerard stamps the contract with the Cakes Pty Ltd company seal and signs as a witness.  The other witness is Sylvia.

A few days pass and George thinks he should have not sold his cake shop.  He now wants it back.

Is George bound by the contract?  Provide reasons for your answer.  You must cite relevant Australian case law and the Corporations Act 2001 (Cth).  Do not discuss contract law.
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Total 8 pages

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