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Liable for the unpaid debt of shifty seller

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Reference no: EM131484350

Question: Lee is the managing director of Top Engineering Pty ltd. Lee accepted a very large order, the value of $200,000 for the supply of steel cables to Shifty Sellers Pty Ltd. The order was placed by Con, the director of Shifty Sellers Pty Ltd. The order was delivered, on credit, to Shifty Sellers Pty Ltd which later failed to pay for the steel cables. It appears that Con was well known as a bad credit risk within the engineering industry, including by Lee. Shifty Sellers Pty Ltd went into liquidation without ever paying Top Engineering Pty Ltd for the steel cables

Can Con be held liable for the unpaid debt of Shifty Seller Pty Ltd? Discuss fully with reference to common law legal principles only(within Australian)

Reference no: EM131484350

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