On 1 August 2022, Jack, with the written approval of Mega Phones Board, then approaches Jill from Techworld to supply 500 Apple iPhones Mark XYZ, which have recently been released, for a total price of $144,000. The Board of Mobile Phones are keen to get supply of these Apple iPhones Mark XYZ so as to be the leader in the market. During their negotiations, Jack rings Jill's business premises and speaks to her managing director Jim seeking a delivery date for the Apple iPhones Mark XYZ. During the course of this conversation, Jim tells Jack in passing that Jill is Techworld's top sales representative and enjoys his fullest authority. Following this conversation, Jill accepts Jack's order, completes the necessary contract documents and signs them on Techworld's behalf.

Note: Jill is employed as a sales representative by Techworld Pty Ltd. In this capacity she has, for many years, made contracts on behalf of Techworld pursuant to which Techworld has sold large numbers of computers and other related products to various retail shops. Jill's responsibilities, under her terms of employment, extend to Techworld's entire range of products but not to any model of Apple iPhones, which has expressly been made the responsibility of another sales representative.

Required: Techworld Ltd seeks your advice about their rights and liabilities arising out of the Apple iPhones transaction. Advise them.

 

Answer rating: 100% (QA)

Techworld Pty Ltds rights and liabilities in the Apple iPhones transaction depend on several factors including the authority of Jill to enter into con... View the full answer