Question 1 (20 marks) Mark, Sophia and Ben are partners in a small book selling business called TWB Book. They have no written agreement. When they decided to open their business, it was agreed that each partner could purchase goods on behalf of the partnership up to a value of $5,000.00. Purchases above this amount were to be agreed to by all partners. In the beginning of this year, Mark attended a trade fair in Sydney. There, he met representatives from Lemon International Ltd, a company dealing in children's entertainment films who was eager to do business with TWB Book. Believing that this would be a good line of business to diversify into, Mark placed an order for several films worth $8,000.00. Sophia and Ben did not know about this order until the films were delivered at their shop, with a bill for $8,000.00. Sophia and Ben were furious on learning of this transaction and contacted Lemon International Ltd to pick these goods from their partnership premises, arguing that Mark had no authority to purchase them on behalf of the firm. Discuss the rights and liabilities of the partners and Lemon International Ltd. Question 2 (20 marks) Johnny and Ash are extremely keen advertising executives with a large organisation. They believe they would be successful running their own business given their confidence in their own ideas and expertise. They decide to form their own company Brilliant Ideas Pty Ltd in which they will be the sole directors and shareholders. Before any of the formal arrangements have proceeded, they stumble across offices they would like to use for the new venture. They purport to enter into a lease for three (3) years by signing the contract as directors of Brilliant Ideas Pty Ltd. Before the security deposit under the lease becomes payable, but immediately after the company has been formed, Johnny and Ash have second thoughts about proceeding with the venture. Their employer had learned of their new plan and offered them more money to stay. They have decided to accept it, and do not want the lease any more. Is there a binding contract between the lessor and Brilliant Ideas Pty Ltd? Advise the lessor