Tom and Harry were in the process of incorporating a company called Foot Shoes Itd. The objects of the company were
to make and sell shoes. Before the process of incorporation was complete, Tom entered into a contract with Clean
Leather Ltd. under which Clean Leather Ltd. agreed to supply Foot Shoes Ltd. with leather worth one million shillings.
The price was to be paid in four installments of two hundred and fifty thousand shillings each, over a period of one year.
Tom signed the contract as follows: "Signed by Tom, on behalf of Foot Shoes Ltd.". By the time the leather was
delivered, Foot Shoes Ltd. had been incorporated.
However, after the second installment had been paid, Foot Shoes Ltd. was unable to pay the balance.
Advise Clean Leather Ltd. on how to recover the outstanding amount of five hundred thousand shillings.
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