Question 2Child Care Pty Ltd has expanded its operations successfully into New South Wales and now wishes to expandinto Queensland. Its three directors are William, Philip and Susan. Both William and Philip are executive directorsand Susan is a non-executive director.Child Care Pty Ltd now wishes to lease premises in Brisbane. Suitable premises are found, a lease entered intoand a building fit out commences. Susan flies to the Gold Coast for a holiday with some of her friends. Whilstthere, Susan visits the new Brisbane premises to familiarise herself with the new venture. She notices that thepremises do not have playground facilities and knowing children and staff in all previous Child Care centres havethose facilities, Susan telephones a number of playground equipment providers and obtains quotes to install astate of the art playground at the Brisbane premises. One of the providers Playgrounds R ‘Us Pty Ltd provides acompetitive quote and confirms that it will complete the work over the next four weeks. Susan confirms thatshe would like the work to commence and accepts a written quotation by signing it ‘as a director of Child CarePty Ltd’.William and Philip were surprised learn about the installation of the playground when it was partially complete.It was their firm view that whilst a playground was necessary a decision was some little while away and that inany event it would need to be discussed and approved by the board of Child Care Pty Ltd before tenders werecalled for its construction. William, who is a director of Child Care Pty Ltd telephoned Playgrounds R ‘Us Pty Ltd.He tells them that Susan did not have any authority to authorise the installation of the playground and thattherefore Child Care Pty Ltd will not be paying for the installation of the playground or any work done to dateby Playgrounds R ‘Us Pty Ltd.Playgrounds R ‘Us Pty Ltd are now considering suing Child Care Pty Ltd. They believe they have a strong case andbelieve that Susan might be considered to be a ‘promoter’ of the company, or she was acting as its agent. Pleaseadvise both Child Care Pty Ltd and Playgrounds R ‘Us Pty Ltd in relation to the enforceability or otherwise of thecontract for the supply and installation of playground. Use common law principles, case law and relevantsections in the Corporations Act (2001),

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Status NEW Posted 19 Sep 2017 03:09 PM My Price 5.00

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