Answered You can hire a professional tutor to get the answer.
David owns and operates a menswear store in Adelaide City. David gets most of his stock from wholesalers in Melbourne.
David owns and operates a menswear store in Adelaide City. David gets most of his stock from wholesalers in Melbourne. Sometimes it is difficult for David to go to Melbourne so he engages a buying Agent, Steve, to purchase stock on his behalf. David and Steve enter an Agency Agreement where Steve is paid a small per cent of the value of the stock he purchases (once it is eventually sold by David). Initially, the terms of the Agency Agreement provide that Steve can enter into transactions valued up to $5000. The Agency Agreement also states that David is permitted to increase or decrease this limit whenever he wants to (so long as David gives notice to Steve). Steve places orders (value between $4000 and $5000) on behalf of David on a number of occasions and David pays for those orders. Most of these orders were placed with a company called PlonkyMenzwear Pty Ltd ("PlonkyMenz"). David later decides it is better to source some stock from overseas and that, commercially, it is better to limit the amount of stock he buys from Australian based wholesalers, Following this decision, David sents Steve an email telling him that he is now only permitted to make purchases up to $2000 in value. Steve ignores David's email and makes a purchase of $4500 from PlonkyMenz. David receives an invoice from PlonkyMenz for $4500. David refuses to pay because Steve wasn't authorised to place an order for that amount. However PlonkyMenz insists that David is liable and wants to sue David for breach of contract? Is David liable to pay the $4500?
