QUESTION 1 – 10 MARKS 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...

Australian Contract Law
Australian Corporations Act
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Contents
Introduction    3
QUESTION 1    3
QUESTION 2    6
References    9
Introduction
A Corporation law or rule is a traditional rule governing content, validity as well as the relationship of the agreements between two and more company, individuals or institutions. In most of the case AGC Ltd v. McWhirter (1977) 1 BLR 9454 is applied, in terms of providing services, selling goods or exchanging ownership or equity. This is the laws that govern what happen when a contract breakdowns. In event of a dispute, the terms of the agreement are determined. For this article, there are two issues that need to be resolved. In addition, this study attempts to answer these two questions using IRAC methods (problems, rules, applications, and conclusions).
QUESTION 1
Issue
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. The issue here is Motorbikes Pty Ltd bound by the contract or not. In the case of Motorcycle PVT Ltd and the John, it’s clear that there are the problems with a contract involving both parties. The motorcycle owners John are close to Tim. He is the secretary of the company owned by Michel. Tim also agrees to give $5,000 for motorcycle, moreover, after an agreement, he or Michel signed a contract to buy a motorcycle. Michelle, who later signs the agreement, wanted to obtain rid of the contract and thought that they also paid a lot for a motorcycle[footnoteRef:2]. Thus, it can be proved from the above circumstances that Michel violates the contract (Corporation Act (Cth) 2001)[footnoteRef:3]. The Corporation ACT (Cth) is the Commonwealth of Australia Act, which regulates the handling of the federal and state of Australia. Commercial entities, which deal primarily with companies and other entities, such as partnerships and managing investment plans, are the main foundation of Australian company law. [2: 'CORPORATIONS ACT 2001 - SECT 132Person May Be Released From Liability But Is Not Entitled To Indemnity' (Www5.austlii.edu.au, 2018) accessed 11 June 2018.] [3: 'Corporations Act 2001' (Legislation.gov.au, 2018) accessed 10 June 2018.]
Law
As defined in the introduction, an agreement is said to contract between two and more than two parties that can be legally enforced. In our cases, we have owners of Motorcycle Private Co., Ltd. Michel and Tim and motorcycle owner John. In addition, both parties assume the statutory obligations that they should complete or finish. When a party to an agreement fails to perform its agreed statutory obligations, legal issues involving the contract arise. In the event that one party breaches the contract, the other party may initiate a lawsuit on the ground of monetary harms, and can request a courtyard to request other parties to fulfill its promises. When agreements were not clearly written, also they became a source of the legal or lawful disputes (AGC (Advances) Ltd v McWhirter (1977) 1 BLR 9454).
When solving problems related to contract law, various terms are often used.
They include:
Contract: Under Australian Corporation Act, it’s referred to as a contract between two and more than two parties that is established in the obligations of every party to perform and not to perform other party’s obligations or solutions in case of default (Scammell v Ousten [1941] AC 251) is contractual UK agreement law on certainty. It is a relatively rare example. The court could not find a way for some kind of contract to work.
Offer: Proposal for the agreement that the other party can be agreeing to sign a legally binding bond with the recipient.
Acceptance: Approves...