outlining the difference between a "Pty Ltd" and "Ltd" company. Explain the advantages and disadvantages of each business structure as part of your answer.
Ridwaan, a seventeen year old trainee chef, found work at a restaurant. However the restaurant was a little far
from where he lived. Public transport was available but Ridwaan found it inconvenient. Ridwaan saw a
promotion on social media by Fantastic Cycles Pty Ltd with a great deal on e-bikes worth $5000. The business
allowed a payment plan to anyone who purchased an e- bike and had a secure job. Ridwaan decided he
wanted a bike to ride to work. He went to Fantastic Cycles and picked out a great looking e-bike. The
salesperson checked with Ridwaan's employer, Sunset Restaurants Ltd, who confirmed he worked there.
Ridwaan entered into an agreement to purchase the bike paying by instalments and signed a written contract.
Ridwaan took the bike home but a month later lost his job and told the business he did have to continue to
pay for the bike because he was under 18 years of age. However Fantastic Cycles disagree and now wish to
sue Ridwaan to recover payments for the e-bike.
A. Discuss whether Fantastic Cycles will be able to successfully sue Ridwaan to recover the rest of the
cost of the e-bike under the Common Law of contract. Use case references to support your arguments.
4B. Referring to case study 4A
Explain the business structures of Fantastic Cycles Pty Ltd and Sunset Restaurants Ltd outlining the difference
between a "Pty Ltd" and "Ltd" company. Explain the advantages and disadvantages of each business
structure as part of your answer.
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