Instructions:

1) Explain the dilemmas faced by businesses with regard to outsourcing.

2) Nicolas is the director of Bit Industries, a drill manufacturer. He is also a major shareholder of Deep Green Corp., a leading landscaping tools manufacturer. Bit undergoes a financial crunch and finds it difficult to raise money. Nicolas signs up Bit as a supplier of drills to Deep Green Corp. Having obtained a new client, Bit manages to avoid financial distress. However, Nicolas has not informed anyone of what he has done. Can this transaction be voided? If yes, on what grounds can it be voided? If no, what additional facts would make the transaction voidable?