Business Laws Case Studies

Business laws: case studies

Table of Contents
Answer 1....................................................................................................................................3
Answer 2....................................................................................................................................5
References..................................................................................................................................8

Answer 1
Issue
One issue in the case study that is to be considered is that Mary’s contract of the three
armoured vans had been done without the approval of the other directors, peter and Paul.
Moreover, Mary withdraws from the No Worries Storage assets of the company by producing
a withdrawal form with a forged signature of peter. Heritage Pty Ltd has been accused of a
breach of contract by Canberra Van Rentals & Sales Pty Ltd. one issue is the consequence of
this. Another issue entails the consequence of Heritage’s attempt to recover the price of the
diamonds taken by Mary from the No Worries Storage Pty Ltd.
Laws
According to section 127, Corporations Act 2001, without the use of a corporate seal, there
are ways of executing a document by the company (Legislation.gov.au. 2017). The document
has to be signed by either two directors of the company or a director and a company
secretary. In the case of a proprietary company, the sole director who is also the company
secretary needs to sign the document. Under section 128 of the Corporations Act 2001, an
individual possesses the entitlement to make assumptions of section 129 regarding the
dealings with a company (Sealy & Worthington, 2013). The company does not possess the
entitlement to assert in proceedings that any assumption is not correct. An individual also
possesses the entitlement to make the assumptions under section 129 while dealing with
another individual who has either acquired title or property from the company
(Legislation.gov.au. 2017). The company and the individual both do not possess the
entitlement to assert in proceedings regarding the dealings that any of the assumptions is
incorrect. The assumptions are allowed to be made even in the case of an officer or a
company acting fraudulently. The assumptions can also be made when an officer or an agent
forges a document in relation with the dealings. On the other hand, an individual does not
have the entitlement to make an assumption under section 129 if it was known to the
individual or the individual was suspicious that the assumption is incorrect. The section 129
includes many assumptions. One assumption that can be made is that the secretary of the
company acts in compliance with the company’s constitution or replaceable rules.