Corporation Act and its Application in Case Studies

RUNNING HEAD: CORPORATION ACT
Corporation Act
Name of the student
Name of the University
Author Note

1
CORPORATION ACT
Response to case study 1
Issue:
The issue regarding this case is whether Michael will be held liable for breaching the contract as
he failed to pay the installment.
Rule:
(1) If an individual purports or enters in the contract on the behalf or for the advantage or
benefit of an organization or a company before the registration the organization or the
company becomes entitled to the benefit of bounds by the contract if the organization or
the company that is identifiable reasonably with it, is ratified and registers the contract-
 Within the agreed time by the contractual parties
 If the agreed time is not present, there should be a presence of a reasonable time after
entering into the contract.
1. The individual those who can be held liable for paying the number of damages to
the opposite party if ratification of the contract is done by the company the
performance is not done at all.
2. If the proceedings are brought for recovering the damages or the injuries under
the provision of the subsection 2 because of the registration of the company, but
the pre-registration contract is not ratified or entering into the substitution for it,
the court may perform any task considering the appropriate circumstance that
includes the ordering of the company for doing the following:
 Paying everything or part of the injuries or the damages that an individual
has the liability to pay

2
CORPORATION ACT
 Transferring the property that is being received by the organization due to
the contract to the parties of the contract
 Paying an amount to the contractual parties.
3. If the organization approves the pre-registered contract but miscarries all the
performance or the part of the performance, an order may be passed by the court
to an individual for playing the part of the damages or the whole part that is being
ordered by the company.
Application:
Michael Danvers invented a new efficient lithium battery for the purpose of serving
electric cars. He has performed every essential method for registering the company. The name of
the company for which he was interested in registering was Ozzie E-Vehicles Pty Ltd along with
ASIC. The registration of the company was done on March 1st with Michael as the solitary
stockholder and the Managing Director. The refinement of lithium takes a huge time. On the date
of 1st February in the early year in preparing the production of the first battery car, Michael had
signed in a contract with the company WA Lithium Refiners Pty Ltd for supplying lithium of
100 kg in exchange of $50000, with payment and delivery scheduled for April 15th. He entered
into the contract in the name of ‘Michael Danvers’ as the Director of the company of Ozzie E-
Vehicles Pty Ltd. According to the provisions of the Corporation Act it is clearly stated that If an
individual purports or enters in the contract on the behalf or for the advantage or benefit of an
organization or a company before the registration the organization or the company becomes
entitled to the benefit of bounds by the contract if the organization or the company that is
identifiable reasonably with it, is ratified and registers the contract-