Tina was employed by a firm of Law book publishers based in Perth who were considering opening
Question:
Tina was employed by a firm of Law book publishers based in Perth who were considering opening a branch office in Gold coast. Tina was instructed to visit the area, make enquiries and report back to head office with a recommendation. When Tina arrived in Gold coast, she was so impressed with its potential that she took action to set up an office before receiving further instructions from Head Office. On behalf of her firm she leased suitable premises, bought office equipment, placed advertisements in the local newspaper and purchased a small sailing boat which she intended to use for entertaining clients of the firm. In each case she arranged for the accounts to be forwarded to Head Office.
Tina's firm decided not to establish a branch office in Gold coast but they began to receive accounts for the unauthorised purchases.
Required:
Referring to relevant cases and legislation, explain the legal position of Tina and her employers regarding payment of the accounts.
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson