Corporate group structures

Running Head: CASE STUDY 2
CASE STUDY 2
Name of the Student
Name of the University
Author’s Note

CASE STUDY 21
CASE STUDY 2:
Facts:
Kellie and her friends had contracted for the formation and incorporation and
registration of a company with the capital of 10000$ each. Kellie enters into contract with the
supplier for the supply of 1000 wicker baskets. Further, she entered into the contract with a
local designer for the creation of a logo for the company’s products. After about two weeks,
her friends backed out from the agreement with certain excuses. Kellie is contacted by the
solicitor that the company is ready for registration and presents her the bill for the work and
service. The baskets are also due to arrive and the local designer also wants to be paid for the
design created. The company has not been registered and neither does it seems to be
registered in future events.
Issue:
The first issue in the case is whether anyone is liable for the amounts that Kellie has
contracted for on behalf of the company that is (or was) to be formed.
The second issue in the case is whether in case Kellie does register a company, would
that means she is no longer liable for the various contracts she entered into on behalf of the
company.
Rules:
The Corporations Act 2001 (Cth) imposes huge liability onto the agent who is
engaged in contracting services of a pre-registration contract (Hill 2018). The law permits the
agent to be released from his or her liability if other parties sign a waiver for the release of
the agent from the liability regarding the pre-registered contract (Pereira 2017).