Adam and Poh, two young entrepreneurs, wished to form a small proprietary limited company to operate...

  

Transcribed Image Text:

Adam and Poh, two young entrepreneurs, wished to form a small proprietary limited company to operate a restaurant. The company was to be called 'Master Plate Pty Ltd' On 22 February, Adam entered into a contract with Irish Linen Ltd to purchase 18 monogrammed tablecloths. He executed the contract in name of Master Plate Pty Ltd (Master Plate). On 24 February, the proposed company was registered. The company dist not adopt a constitution. Adam and Poh each took 50 per cent of the issuga capital, and both were appointed as directors. Due to a dispute between Adam and Poh regarding the contract with Irish Linen Ltd, that contract was not ratified by Master Plate until 30 March. On 1 April, Adam orders restaurant-quality cutlery from Carvers Pty Ltd. Adam affixes the company seal to the contract and signs it. What assumptions are Carvers Pty Ltd entitled to make? It is now 1 May. The tablecloths supplied by Irish Linen Ltd have been delivered to Master Plate but not paid for. Explain who may be liable to pay for them. Adam and Poh, two young entrepreneurs, wished to form a small proprietary limited company to operate a restaurant. The company was to be called 'Master Plate Pty Ltd' On 22 February, Adam entered into a contract with Irish Linen Ltd to purchase 18 monogrammed tablecloths. He executed the contract in name of Master Plate Pty Ltd (Master Plate). On 24 February, the proposed company was registered. The company dist not adopt a constitution. Adam and Poh each took 50 per cent of the issuga capital, and both were appointed as directors. Due to a dispute between Adam and Poh regarding the contract with Irish Linen Ltd, that contract was not ratified by Master Plate until 30 March. On 1 April, Adam orders restaurant-quality cutlery from Carvers Pty Ltd. Adam affixes the company seal to the contract and signs it. What assumptions are Carvers Pty Ltd entitled to make? It is now 1 May. The tablecloths supplied by Irish Linen Ltd have been delivered to Master Plate but not paid for. Explain who may be liable to pay for them.