Corporate Law Motorbikes Pty Ltd Issue 2022

Running head: QUESTIONS 1
Corporate law
Student details:
9/22/2019

QUESTIONS 2
Answer 1:
Issue
In the case of Motorbikes Pty Ltd and John, it is clear that there is issue with a contract
involving contracting persons. John (motorbike’s owner) approaches Tim who is company
secretary that they own with Michelle. The company secretary was agree for paying five
thousand dollars for motorbike, as well as after entering into agreement, Michelle and Tim
signed the contract for buying the motorbike. After signed the contract, Michelle wanted to get
out of contract considering that they had paid too much to buy motorbike. Consequently, the
issue is that whether Michelle could be breaching the contract under the Corporations Act 2001
(Cth).
Law
The contract is said to be the agreement between 2 or more than 2 contracting person that is
legally enforceable. In this case, the contracting persons are Michelle and Tim. They are owner
of motorbike. Also, both sides presuppose the legal obligations that they should complete. While
one contracting person to a contract fails for perform the legal obligations it has agreed to, legal
problems including contracts take place. In cases where a party breaches a contract, the other
party may take action. While the contract is not written in clear terms, then it becomes the source
of legal dispute. The same facts have been stated in AGC (Advances) Ltd v McWhirter (1977) 1
BLR 9454. Following are some terms to be used at the time of making solution of a problem
related to Contract law-

QUESTIONS 3
1. Contract- The contract is considered as agreement between 2 or more contracting
persons that builds in all the obligations for doing something or not doing this, and right
to performance of obligation of other party or the resolution in case the violation takes
place (Scammell v Ousten [1941] AC 251).
2. Offer- it is the proposal for contract that other contracting person can agree on the
recipient to create contract that is binding legally.
3. Performance-it is action required for fulfilling promises.
4. Acceptance- it is approval of offer of the contract that is binding legally.
5. Statute of fraud- the law of the state that restricts the application of some contracts if not
they are written
6. Breach- it is act to not to perform the obligations made by contract or the promise
without good reason.
Application
In a given case, Michelle desires the termination of contract. Michelle is one of the owners of
Motorbikes Pty Ltd, as well as director of company is bound for making contract so do the
organization. The actuality is that as owners of company Michelle and Tim signed a deal at the
time of buying motorbike of John makes the organization bound by a contract. If the parties wish
to terminate the contract or modify the contract, this is essentially needed of them to agree to
modification or termination (Overland, 2019). The right for determining the contract law a rise in
the 3 examples-
1. Repudiation or renunciation of the agreement by one of the contracting person
2. The breach of the critical term