Amethyst is the managing director of VitC Ltd, a company that produces organic juices. The company has a constitution, which states that the company only purchase oranges and lemons. Further, the constitution states that transactions are limited to $100,000 without board approval. Amethysts cousin Leila has taken up a position as a Purchaser for VitC. Amethysts have given Leila her first assignment which is two go up North and makes a contract for this seasons citrus fruit. When Leila goes up North she makes a contract from Appleby Ltd for $140,000 for the supply of lemons, oranges and grapefruit. When the purchase comes to the attention of the Board of Directors they are aghast as the purchase agreement is for 309% oranges, 30% lemons and 40% grapefruit. The company has nothing to do with grapefruits as their juices do not contain this particular citrus fruit. The board advises Appleby Ltd that they will not pay for the fruit ordered because Leila did not have the authority to make the purchase. Appleby disagrees and states that Leila was a representative of the company and therefore VitC should take responsibility for her actions. VitC Ltd disagrees and states that it is actually Appleby Lord responsibility to look into these things.

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Case VitC Ltd v Appleby Ltd Format IRAC Issue Leila is one in all the representatives of VitC she ha... View the full answer