Pluto Constructions Pty Ltd is a high-profile builder in the inner eastern suburbs of Melbourne. It has three directors. Unfortunately, due to the tough economic conditions the company did not survive and was placed in liquidation. The liquidator in reviewing the affairs of the company noted the following activities took place: a. Reece Supplies Ltd has agreed to invest $150,000 in the company. To date it had only invested $45,000. b. Donald the managing director had entered into a contract to buy supplies for the company. However, Gerald the other director was absent so Gerald forged his signature to the contract. Gerald also asked the supplier to deliver $55,000 of the goods to his home. The total value of the contract was for $120,000. The invoice for the $150,000 went to Pluto Constructions Pty Ltd. Is Reece Supplies Ltd liable to pay the balance or not? Is the contract with the supplier of goods valid?

Pluto Constructions Pty Ltd is a high-profile builder in the inner eastern suburbs of Melbourne. It has three directors. Unfortunately, due to the tough economic conditions the company did not survive and was placed in liquidation. The liquidator in reviewing the affairs of the company noted the following activities took place: a. Reece Supplies Ltd has agreed to invest $150,000 in the company. To date it had only invested $45,000. b. Donald the managing director had entered into a contract to buy supplies for the company. However, Gerald the other director was absent so Gerald forged his signature to the contract. Gerald also asked the supplier to deliver $55,000 of the goods to his home. The total value of the contract was for $120,000. The invoice for the $150,000 went to Pluto Constructions Pty Ltd. Is Reece Supplies Ltd liable to pay the balance or not? Is the contract with the supplier of goods valid?