What defences may be available

Assignment Help Business Law and Ethics

Reference no: EM133474547

Question: Ford, Harvey, and Suzuki are the directors of Bishop Pty Ltd, a company that imports bicycles from Europe for resale in Australia. Harvey and Suzuki authorise Ford to enter into contracts, on behalf of Bishop Pty Ltd, with European bicycle suppliers. Ford signs a supply agreement with European bicycle supplier, Zoe Ltd. Bishop Pty Ltd places an order with Zoe Ltd for the supply of 500 bicycles to meet anticipated demand in Australia during the upcoming summer months. Zoe Ltd terminates the agreement and refuses to ship the bicycles. The directors of Bishop Pty Ltd are all shocked and disappointed because the company has already spent over $10,000 in advertising to market the bicycles in Australia. They threaten to sue Zoe Ltd for breach of contract but are directed to a clause in the agreement that states: "This written agreement is not intended to be a formal or legal agreement, but a honourable pledge between Zoe Ltd and Bishop Pty Ltd." Harvey and Suzuki cannot believe Ford could be so careless as to sign an agreement containing a clause like this. They are also concerned that their reliance on Ford may also amount to carelessness on their part . Explain if Ford, Harvey or Suzuki have breached their director's duty to exercise their powers with care, skill, and diligence and if so, what defences may be available. Use the IRAC structure to organise your answers.

Reference no: EM133474547

Questions Cloud

Discuss the strengths and weaknesses of the key theories : Discuss the strengths and weaknesses of the key theories/ideas/concepts on the topics of managing and controlling ethics programs, globalisation of ethical

What are the consequences of jason being convicted : What are the consequences of Jason being convicted of impaired driving? If Jason was acquitted of his criminal charges is it possible for him to be found

What data analysis system used in jigwa state immunization : What data analysis system was used in the jigwa state immunization study?

Develop introduction to your chosen healthcare organization : Develop an introduction to your chosen healthcare organization. Develop research-based answers to the five previously created questions.

What defences may be available : Explain if Ford, Harvey or Suzuki have breached their director's duty to exercise their powers with care, skill, and diligence and if so, what defences

Key factor in causing many health care organizations : The competitive environment is a key factor in causing many health care organizations to raise the stakes and force strategic planning to be more fluid.

Do you believe that government policy and regulation : Do you Believe that government policy and regulation that government policy and regulations influence government decision making? If so how?

Develop a plan for mastering your leadership style : Develop a plan for mastering your leadership style. Describe steps you can take to master those skills. How will you measure your success?

What are challenges by multigenerational administrators : Given the background that healthcare facility are coming together through a merger, what are the challenges faced by multigenerational administrators?

User Account

All Pages