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Question - Michelle and Tim are passionate about motorbikes. In fact, they own a company called Motorbikes Pty Ltd. Michelle is a Director and Tim is the company secretary. They buy and sell motorbikes and repair them.
John wishes to sell his motorbike. John approaches Tim and Tim agrees to purchase John's motorbike for $5,000. Tim and Michelle both sign the contract to purchase John's motorbike.
Two days later, Michelle thinks they have paid too much for John's motorbike and wants to get out of the contract.
Is Motorbikes Pty Ltd bound by the contract? Provide reasons for your answer. You must cite relevant Australian case law and the Corporations Act 2001 (Cth). Do not discuss contract law.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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