Bay Surf Ltd ('BSL') is a large company that builds apartment blocks in the Bay of Plenty. The company has five directors, including Roxanne Reed who is managing director. Roxanne engages Ariana Adams (an architect who specialises in sustainable architecture) to draw up plans for a new environmentally friendly development. Ariana's fee for the work is $60,000. Ariana and Roxanne sign a written contract. After she has completed the work, Ariana sends an invoice to BSL, but the company refuses to pay. She is advised that the BSL's constitution requires that any contract for an amount in excess of $50,000 must be signed by a majority of directors. Ariana was not aware of this requirement.

Advise Ariana if a court is likely to require BSL to pay the invoice.

Answer rating: 100% (QA)

When considering whether Bay Surf Ltd BSL would be required by a court to pay the invoice theres a need to consider various aspects of contract law an... View the full answer