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:
Verified
Q4: Pursuant to section 129(5), a person may
Q5: Vicarious liability means a company is responsible
Q6: Tony enters into a contract to purchase
Q7: Alex enters into a contract to purchase
Q8: Wheelie Ltd runs a business selling car
Q10: Lionel is the managing director of Train
Q11: How do companies exercise their legal capacity
Q12: What is the organic theory?
Q13: When is a contract binding on a
Q14: What is a "common seal"?
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents