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The articles of association of Racing Parts Pte Ltd states that any purchase of motor parts must be approved by the board of directors and that Andy only has written authority to acquire motor parts on behalf of the company up to $80,000 without the need to obtain approval from Laurence the managing director.
Andy is busy in the warehouse and asks his assistant Ramon, the assistant warehouse manager to place an order with Repco Ltd.
Ramon rings Repco Ltd and was told over the phone if he ordered $100,000 of motor parts they would be cheaper because they were on special.
Repco Ltd which has dealt with Racing Parts Pte Ltd before accepts and prepares the order. Prior to delivery, Ramon rings Repco and asks them to deliver one box containing 3 oil filters to Ramon’s home. Ramon has paid Racing Parts Pte Ltd $45 being the cost price for these items.
Racing Parts Pte Ltd now refuses to pay $100,000 for the goods
Required:
Advise Repco Ltd if it can recover the $100,000 from Racing Parts Pte Ltd.
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