Australian Commercial

Case Study 2
Tina was employed by a firm of Law book publishers based in Perth who were considering
opening a branch office in Gold coast. Tina was instructed to visit the area, make enquiries
and report back to head office with a recommendation. When Tina arrived in Gold coast, she
was so impressed with its potential that she took action to set up an office before receiving
further instructions from Head Office. On behalf of her firm she leased suitable premises,
bought office equipment, placed advertisements in the local newspaper and purchased a small sailing boat which she intended to use for entertaining clients of the firm. In each case she
arranged for the accounts to be forwarded to Head Office.
Tina’s firm decided not to establish a branch office in Gold coast but they began to receive
accounts for the unauthorised purchases.
Required:
Referring to relevant cases and legislation, explain the legal position of Tina and her
employers regarding payment of the accounts