Jack is a director of Mega Phones Pty Ltd (Mega Phones), a retail provider of mobile phones,
Question:
Jack is a director of Mega Phones Pty Ltd (Mega Phones), a retail provider of mobile phones, computers and repair services. On 2 June 2022 Jill, the sales manager of Techy's World Ltd (Techworld), approached Jack offering to sell Taiwanese Laptops to Mega Phones. Jack informs Jill that, while he does not have authority to contract on behalf of the company, he will take the offer to the Board of Directors of Mega Phones.
Jack informed the Board of the offer. The Board resolved to accept the offer and informed Jill of this by letter dated 10 June 2022. However, unbeknownst to the rest of the Board, Jill had, on 9 June 2022 (precisely 24 hours prior to the Board's resolution), informed Jack by telephone that she was withdrawing the offer because she had found another purchaser.
Required:
The Board of Mega Phones claims that the withdrawal by Jill made on 9 June 2022 was ineffective and seeks to have the contract enforced. Advise Mega Phones of its rights, if any, against Jill/ Techy's World.
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-1259692406
18th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello