Advise nathan if there is a valid contract

Assignment Help Other Subject
Reference no: EM13316028

Part-1

Arthur, Bill, Christine and David are directors of Chance Ltd, a company whose business is wine bottling. Given the downturn in the economy and entry of new countries into the "New World" wine market, competition especially in Asia is becoming increasingly stiff. The directors of Chance feel that it would be prudent to diversify and invest in other business opportunities.

During the Easter vacation, Arthur caught up with his old friend from university days, Walter, who works for a green energy company in Norway that predominantly specialise in Tidal energy. Tidal energy is a very new form of energy that is picking up momentum in Europe and the Atlantic coast of the USA. The power created through tidal generators is generally more environmentally friendly and causes less impact on established ecosystems. Although not yet widely used, tidal power has a potential for future electricity generation. None of the energy companies in Australia currently use this form of energy.

At the next board meeting Arthur mentions tidal energy as a possible business venture for Chance Ltd. Arthur invites Walter who has just formed a company, Waves Pty Ltd that makes tidal stream generators, to come and speak to Arthur, Bill, Christine and David at their next meeting about tidal energy for 30 minutes. Walter is a very convincing speaker who showed them great 3D underwater pictures of the tidal stream generators his company makes. After Walter leaves, Arthur, Bill, Christine and David are all very excited at the prospect of being pioneers in the field of tidal energy in Australia and believe that this will be a profitable business. Without much further discussion they decided to invest $20 million into this venture and to give the sole contract to supply tidal steam generators to Waves Pty Ltd.

3 months later Chance Ltd.'s tidal energy business is a disaster. They discovered that the Australian waters is not suitable for tidal energy. While it may be suitable in Europe and the USA, Australia is not a suitable site for tidal energy, mainly because of our Great Barrier Reef.

The Directors later discovered that although Walter had been very convincing in his speech to them he really was not an expert in tidal energy and actually held an insignificant position in his company in Norway. And much to the directors' surprise, they discovered that Arthur is a major shareholder of Waves Pty Ltd.

Advise the directors of Chance ltd whether they have breached their directors duties under both the Corporations Act 2001 and general law.

Part-2

Nathan was born in Sri Lanka and recently arrived in Australia on a boat. He holds a refugee visa and is currently living in Adelaide. He speaks very little English. One sunny afternoon while he was walking down Rundle Mall he was approached by John, a sales representative from a telephone company, Dubious Connections Pty Ltd, who was selling telephone contracts. John was struggling to meet his sales quota and needed to sign up 10 more contracts by the end of the week. He told Nathan about the contracts he was selling. Nathan had been recently thinking about getting a mobile phone as it would be useful for him, especially to be connected with his family back home. As he had neither owned a phone nor had he ever entered into a telephone contract before, he knew virtually nothing about such contracts, and John was aware of this. John told Nathan that there was a special promotion just for that day and if Nathan signed up today he was entitled to a free i0S7.1 telephone. John explained the main features of the contracts but knew that Nathan did not understand most of what John told him, neither did he offer to get an interpreter to explain the terms and conditions of the contract to Nathan. Nathan was under the impression that he could terminate the contract any time he wanted and simply return the phone. In fact the contract was for a three year term and if the contracted was terminated anytime during this period Nathan would have to pay the full contract price of $3120 plus the price of the iOS7.1 which was an additional $800. After two months into the contract Nathan found the additional expense of this monthly phone bill difficult to manage with the meagre allowance he received from Red Cross. He wants to terminate the contract and return the phone.

Advise Nathan if there is a valid contract with Dubious Connections Pty Ltd, and any remedies that may be available to him. (Make reference to relevant case law and support your answer).

Reference no: EM13316028

Questions Cloud

Many economists are worried that a high level of budget : Many economists are worried that a high level of budget deficits may lead to inflationary monetary policies in the future. Could these budget deficits have an effect on the current rate of inflation?
The more credible the policymakers who pursue an : The more credible the policymakers who pursue an anti-inflation policy, the more successful that policy will be. Is this statement true, false, or uncertain? Explain your answer.
Compute the acceleration of the box : A student decides to move a box of books into her dormitory room by pulling on a rope attached to the box.  Find the acceleration of the box
Find the rotational frequency of the wheel : A large wheel-shaped space station, 120 m in diameter, Find the rotational frequency of the wheel
Advise nathan if there is a valid contract : Advise the directors of Chance ltd whether they have breached their directors duties under both the Corporations Act 2001 and general law.
What effective annual interest rate do they pay : A bank advertises it pays 7% annual interest, compounded daily, on savings accounts, provided the money is left in the account for 4 years. What effective annual interest rate do they pay?
How deep is the well : A person hums into the top of a well and finds that standing waves are established at frequencies of 10, 30, and 50 Hz. How deep is the well
What happens to reserves and the monetary base : If the Fed sells $2 million of bonds to the First National Bank, What happens to reserves and the monetary base? Use T-accounts to explain your answer.
Duties of corporations act and the corresponding fiduciary : Designco Pty Ltd designs, manufactures and distributes craft kits for children. Children use the kits to construct balsa wood models of animals, which can be painted. The directors of the company are Ian and May. Ian and May are also the only shareho..

Reviews

Write a Review

Other Subject Questions & Answers

  Cross-cultural opportunities and conflicts in canada

Short Paper on Cross-cultural Opportunities and Conflicts in Canada.

  Sociology theory questions

Sociology are very fundamental in nature. Role strain and role constraint speak about the duties and responsibilities of the roles of people in society or in a group. A short theory about Darwin and Moths is also answered.

  A book review on unfaithful angels

This review will help the reader understand the social work profession through different concepts giving the glimpse of why the social work profession might have drifted away from its original purpose of serving the poor.

  Disorder paper: schizophrenia

Schizophrenia does not really have just one single cause. It is a possibility that this disorder could be inherited but not all doctors are sure.

  Individual assignment: two models handout and rubric

Individual Assignment : Two Models Handout and Rubric,    This paper will allow you to understand and evaluate two vastly different organizational models and to effectively communicate their differences.

  Developing strategic intent for toyota

The following report includes the description about the organization, its strategies, industry analysis in which it operates and its position in the industry.

  Gasoline powered passenger vehicles

In this study, we examine how gasoline price volatility and income of the consumers impacts consumer's demand for gasoline.

  An aspect of poverty in canada

Economics thesis undergrad 4th year paper to write. it should be about 22 pages in length, literature review, economic analysis and then data or cost benefit analysis.

  Ngn customer satisfaction qos indicator for 3g services

The paper aims to highlight the global trends in countries and regions where 3G has already been introduced and propose an implementation plan to the telecom operators of developing countries.

  Prepare a power point presentation

Prepare the power point presentation for the case: Santa Fe Independent School District

  Information literacy is important in this environment

Information literacy is critically important in this contemporary environment

  Associative property of multiplication

Write a definition for associative property of multiplication.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd