Toan is observed to be a developer who had appeared previously in the government auction and also bid or owned a land from the auction. Furthermore, Toan wanted to buy or hold another land from the government auction to be held recently. In order to own another land from the auction, Toan formed a proprietary company with whose name he thought of taking part in the auction. Moreover, after appearing in the auction Toan in lieu of his company was able to bid successfully for another land in the auction. However, the authority of the auction refused to handover the land to Toan and its company, saying that they had already owned a land before from the previous auction and were violating the rules of the auction, as a result, they cannot own this land. After the refusal from the authority, Toan sued the government authority for not handing over the second land to the company by demonstrating the fact that the land was purchased by his company and not by himself. And there was no provision preventing him to conduct such an act.
It is assumed that apparently, it is not Toan who appeared in the auction second time, rather it is Toan’s company who took part in the auction for bidding for land. According to the formulated law in an auction by the government, the process opted by Toan is legal and he is not violating the rules. This is because for the first time Toan bid for a land in the auction in lieu of his own name, however in the second time, Toan attempted to bid for a land in the auction under an enacted company for the sole purpose of bidding for the land. Thus, it can be said that from the viewpoint of intention, Toan is violating the auction rules laid by the government.
A case study ‘Australian Law- Law of Business Association’ has been considered to present advice for Toan. The case states that Mr Main is a person who bid for a land from the local government council held an auction. Furthermore, he desired to own or bid for another land from the subsequent auction of government. In order to own another land, he formed a company. .