Plastic Products Pty Ltd (PP) wants to enter into two agreements with another company, Plastic Dice Pty
Question:
Plastic Products Pty Ltd (PP) wants to enter into two agreements with another company,
Plastic Dice Pty Ltd (PD).
The first agreement is for PP to purchase a 220-hectare property in the Southern
Highlands area of NSW from PD at a cost of $10m.
The second agreement is for PP to sell 2000 plastic dice to PD.
Assume both companies use the replaceable rules and have a common seal.
Required:
Answer the following questions:
(a) Describe the process that both companies will follow to enter into the first agreement so that it is a legally binding contract. 4
(b) Describe the process that both companies will follow to enter into the second agreement so that it is a legally binding contract. 4
(c) Is there any reason why the process followed for the first agreement might be different to the process followed for the second agreement? If so, explain this
reason.