Ethel, Archie and Nancy have been best friends since in their first year of university (2020)....

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Ethel, Archie and Nancy have been best friends since in their first year of university (2020). To entertain themselves during the pandemic, they started posting videos about how to study online. As the videos became popular, the trio began making money from online advertising. By January 2022, they were posting one video a week, and being paid $1000 per week from a video sharing website. At that time, they split the profits equally between themselves and divided the costs and work like this: • Ethel (whose parents are well-off) paid for the production costs; • Nancy (whose parents are not) came up with the concepts for the videos; and • Archie (who is an expert salesman) marketed the videos and administered their little business. All three students appeared in the films. They all had use of one of Ethel's credit cards but otherwise kept their personal finances separate. Seeing that the business was growing, Archie suggested that they create a company through which to carry on the venture. They agreed on a name ('EzzyStudy Pty Ltd') and some other key details about the potential company. In April 2022, they even made a contract for and on behalf of EzzyStudy with Veronica, an online marketing expert. However, by May 2022, they had forgotten about incorporating EzzyStudy. They were distracted by a new project---delivering textbook content via podcasts and info graphics---which they started pursuing through another company, Talking Textbook Pty Ltd, that they did go ahead and incorporate. Archie, Ethel and Nancy own an equal number of shares in Talking Textbook and are all directors. They appointed Ethel as Managing Director, but Archie still took the lead on running the commercial side of the business, much like he did for their original online study video enterprise. By October 2022, the friendship between Ethel, Archie and Nancy had begun to sour. It emerged that Archie had made two contracts with a new friend, Moose, without Ethel or Nancy's knowledge. The first contract (dated February 2022) was supposed to be for 'post-production' services on the online study videos. The second contract (dated June 2022) was for 'specialist consulting services' to Talking Textbook. Moose is demanding $50,000 for each contract. Meantime, Veronica has sent in her bill for the work she did for EzzyStudy (although it was never set up). Archie has left the country and is not responding to emails or messages on social media. Advise Ethel and Nancy on the enforceability of all the contracts. Ethel, Archie and Nancy have been best friends since in their first year of university (2020). To entertain themselves during the pandemic, they started posting videos about how to study online. As the videos became popular, the trio began making money from online advertising. By January 2022, they were posting one video a week, and being paid $1000 per week from a video sharing website. At that time, they split the profits equally between themselves and divided the costs and work like this: • Ethel (whose parents are well-off) paid for the production costs; • Nancy (whose parents are not) came up with the concepts for the videos; and • Archie (who is an expert salesman) marketed the videos and administered their little business. All three students appeared in the films. They all had use of one of Ethel's credit cards but otherwise kept their personal finances separate. Seeing that the business was growing, Archie suggested that they create a company through which to carry on the venture. They agreed on a name ('EzzyStudy Pty Ltd') and some other key details about the potential company. In April 2022, they even made a contract for and on behalf of EzzyStudy with Veronica, an online marketing expert. However, by May 2022, they had forgotten about incorporating EzzyStudy. They were distracted by a new project---delivering textbook content via podcasts and info graphics---which they started pursuing through another company, Talking Textbook Pty Ltd, that they did go ahead and incorporate. Archie, Ethel and Nancy own an equal number of shares in Talking Textbook and are all directors. They appointed Ethel as Managing Director, but Archie still took the lead on running the commercial side of the business, much like he did for their original online study video enterprise. By October 2022, the friendship between Ethel, Archie and Nancy had begun to sour. It emerged that Archie had made two contracts with a new friend, Moose, without Ethel or Nancy's knowledge. The first contract (dated February 2022) was supposed to be for 'post-production' services on the online study videos. The second contract (dated June 2022) was for 'specialist consulting services' to Talking Textbook. Moose is demanding $50,000 for each contract. Meantime, Veronica has sent in her bill for the work she did for EzzyStudy (although it was never set up). Archie has left the country and is not responding to emails or messages on social media. Advise Ethel and Nancy on the enforceability of all the contracts.

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Enforceability of Contracts Heres an analysis of the enforceability of each contract 1 Archies contracts with Moose February 2022 contract Ethel and Nancys involvementUnclear if they were aware of thi... View the full answer