LML4806 Assignment
1 (COMPLETE
ANSWERS) Semester 2
2024 (818236) - DUE 25
August 2024 ; 100%
TRUSTED Complete,
trusted solutions and
explanations.
ADMIN
[COMPANY NAME]
, Question: 1 Jane, John and Jabulani are the directors of Touring
Africa by Bicycle (Pty) Ltd (“the company”), a company that is
based in Johannesburg. The memorandum of incorporation of the
company provides that only the board of directors have the authority
to enter into contracts on behalf of the company. James, the branch
manager of the company in Durban, attends an outdoor show in
Durban to scout for useful new products for the company’s cycling
excursions. At the outdoor show one of the exhibitors, Cycle for
Life (Pty) Ltd, has a limited special offer on electric bicycles for the
amount of R120 000.00 per bicycle. James contacts the directors of
the company by way of a Zoom call, and while speaking to the
directors of the company on the Zoom call, James keeps his mobile
phone on speakerphone. The directors instruct James to purchase six
of the electric bicycles on behalf of the company. Nancy, the
representative of Cycle for Life (Pty) Ltd, hears the instruction, and
because James has previously entered into agreements with Cycle
for Life (Pty) Ltd without any problems, she enters into an
agreement with James for the sale of six electric 4 bicycles to
Touring Africa by Bicycle (Pty) Ltd. The electric bicycles are
delivered to the company’s Durban office. When Cycle for Life
(Pty) Ltd sends an invoice for payment of the total amount of R720
000.00 for the six electric bicycles, Touring Africa by Bicycle (Pty)
Ltd refuses to pay, arguing that it is not bound by the contract as
James did not have the authority to act on its behalf. Nancy
approaches you for legal advice. With reference to the relevant
authority/principle and the facts, advise Nancy on what Cycle for
Life (Pty) Ltd must allege and prove in order to prevent Touring