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This is a case of a shoes manufacturing company having four directors named Melanie, Matthew, Jonathon and Patrick. The company has her constitution with two main objects clauses mentioned below.
Melanie, who is the manager of manufacturing, finds a machine which can increase productivity of manufacturing by 20%. Moreover, the machine can manufacture men’s shoes also with slight adjustments. The cost of machine is $5, 00,000. Melanie finds an opportunity of improvement in production with this machine and signs contract of purchase of it on behalf of the company.
Thus, he violates the second clause which states that any contract above $2,50,000 requires approval of the managing director i.e. Patrick. Patrick believes that the company can't afford this purchase at this period of time and he is also aware that the clause of company also mentions manufacturing of ladies shoes only
Orginal Price : $36.40
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