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Assignment help 2377

Michelle and Tim are passionate about motorbikes. In fact, they own a company called Motorbikes Pty Ltd. Michelle is a Director and Tim is the company secretary. They buy and sell motorbikes and repair them.

John wishes to sell his motorbike. John approaches Tim and Tim agrees to purchase John’s motorbike for $5,000. Tim and Michelle both sign the contract to purchase John’s motorbike. 

Two days later, Michelle thinks they have paid too much for John’s motorbike and wants to get out of the contract.

Is Motorbikes Pty Ltd bound by the contract? Provide reasons for your answer. You must cite relevant Australian case law and the Corporations Act 2001 (Cth). Do not discuss contract law.


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