answer for this? PROBLEM QUESTION Adam and Poh, two young entrepreneurs, wished
ID: 3199330 • Letter: A
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answer for this?
PROBLEM QUESTION Adam and Poh, two young entrepreneurs, wished to form a small proprieta limited company to operate a restaurant. The company was to be called Maste Plate Pty Ltd: On 22 February, Adam entered into a contract with Irish Linen Ltd to purchase 18 monogrammed tablecloths. He executed the contract in the name of Master Plate Pty Ltd (Master Plate). On 24 February, the proposed company was registered. The company did not adopt a constitution. Adam and Poh each took 50 per cent of the issued capital, and both were appointed as directors. Due to a dispute between Adam and Poh regarding the contract with Irish Linen Ltd, that contract was not ratified by Master Plate until 30 March. On 1 April, Adam orders restaurant-quality cutlery from Carvers Pty Ltd. Adam affixes the company seal to the contract and signs it. What assumptions are Carvers Pty Ltd entitled to make? It is now 1 May. The tablecloths supplied by Irish Linen Ltd have been delivered to Master Plate but not paid for. Explain who may be liable to pay for them.Explanation / Answer
(Ans:-)In absence of any constitution of the company and given Adam and Poh have a 50 percent partnership.At first to answer for what Carvers Pty Ltd. Would assume is that :-
If the contract has the seal of the company but one of the partner has the sign on it and that no partner is a major share holder so the contract is absolutely legal and stands justified.
Secondly it is the constitution which binds the working functionalities of any organization by some sets of guidelines and rules. When this is absent and share is equitably distributed so the Payment made has to be equitably beared and to be paid from companies account as a whole since the profit is also for company as a whole and not the individual.
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