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Question - Jane is one of four director of Uplift Pty Ltd. Uplift is a company that produces uplifting and inspirational stationary. Jane meets with PerfectDay Pty Ltd, a company that is in the wedding industry to negotiate a contract for the supply of stationary. PerfectDay Pty Ltd wants a very large contract, which could be very lucrative for UpLIft. Jane negotiates a four year contract and signs. When Jane tells this to the other directors, they are very upset as they believe that this stretches the company beyond its capacity. They refuse to honor the contract.
1. Explain the relevant rules that apply here is if Jane has the authority to make the transaction.
2. Explain the relevant rules that would apply here if Jane did not have the authority to make this transaction due to a stipulation in her contract limiting her capacity to make contracts, however she is listed as a company director on the paperwork.
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