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Magnus Is a Salesperson Employed by Jaxx Pty Ltd

Question 9

Multiple Choice

Magnus is a salesperson employed by Jaxx Pty Ltd. ("Jaxx") . Jaxx is in the business of retailing birthday cakes. Magnus entered into a contract on behalf of Jaxx with Alex for the sale of a birthday cake. Which of the following is the best answer based solely on the information provided:


A) There is no contract between Alex and Jaxx because employees cannot enter into contracts on behalf of the company which employs them.
B) Alex cannot enforce the contract with Jaxx because she was aware Magnus was an employee and since she was aware of the true facts, she cannot rely on the assumptions in section 129 of the Corporations Act 2001 (Cth) .
C) Jaxx is a small proprietary company.
D) Based on the facts presented, there is nothing to suggest the contract between Alex and Jaxx is not binding.
E) The contract is not binding because Jaxx did not affix its seal to the contract.

Correct Answer:

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