The tablecloths and aprons supplied by irish linen ltd and


Axel and Paul, two young entrepreneurs, decided to form a small proprietary limited company to operate a restaurant. The company was to be called "Fine Food Fine Wine Pty Ltd". On 22 February, wanting the business to be operational as quickly as possible, Axel entered into a contract with Irish Linen Ltd to buy 24 monogrammed tablecloths and 12 aprons. Although Axel did not discuss this contract with Paul, Axelstill executed the contractin the name of "Fine Food Fine Wine Pty Ltd".

On 24 February, the proposed company was registered with the Australian Securities and Investments Commission (ASIC). The company did not adopt a separate written constitution. Axel and Paul each took 50 percent of the issued capital, and both were appointed as directors. Due to a dispute between Axel and Paul regarding the contract with Irish Linen Ltd, that contract was not ratified by Fine Food Fine Wine Pty Ltd until 30 March.

On 1 April, Axel ordered 10 x (tables and 4 chair settings) from Domestic Bliss Pty Ltd. Axel affixed the company seal to the contract and signed it.

It is now 1 May. Both the tablecloths and aprons supplied by Irish Linen Ltd and the table and chair settings from Domestic Bliss Pty Ltd have been delivered, but not paid for.

Question: Are Axel, Paul, or Fine Food Fine Wine Pty Ltd liable to pay for:

(i) the tablecloths and aprons, and/or

(ii) the table and chair settings?

Justify your answer using the ILAC method and the available evidence.

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Dissertation: The tablecloths and aprons supplied by irish linen ltd and
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