Question One
John is the factory manager of Alpha Ltd, a company that manufactures computer keyboards. John is absent on annual leave when Mickey visits the factory. Mickey is a sales representative for Solder Ltd a supplier of soldering equipment. Mickey asks the receptionist for the factory manager but as John is absent, Harry (a clerk in the factory office) is called to reception.
Harry just introduces himself by his name. Mickey informs Harry about his company's products and Harry is so impressed he places an order for a large number of soldering irons.
The soldering irons are delivered after John returns from leave and he immediately rejects them as the manufacturing process is soon to be automated using robots. Solder Ltd is informed that there is no agreement as Harry did not have authority to enter into the contract on behalf of Alpha Ltd.
REQUIRED:
Analyse and discuss the above facts examining the possibility that the contract may or may not be enforceable. Your answer should include an analysis of any types of authority that could be relevant to these facts and any cases or sections of the Corporations Act that would be applicable.