Charlene Bertram owned 98 percent of the stock of Traces of Beauty, Inc. The company had been founded in the 1920s by her maternal grandmother. The company had been run by professional managers after the grandmother died and left Charlene her stock. Traces imported cosmetics from France, England, and Sweden. The products were then sold directly to consumers by mail, 800 numbers, and on the Internet. While on a trip to Italy, Charlene found a new line of cosmetics that dazzled her. Without consulting any of the company officers, Charlene negotiated an exclusive distributorship for Traces with the Italian cosmetic maker. Upon her return to the states, Charlene met with the company president and told her about the deal. The president was shocked and noted that carrying the Italian line would breach an existing contract with the French cosmetic firm. This contract had made Traces millions of dollars over the last 10 years. The president then consulted the corporate legal staff to see if there was any way out of the contract with the Italian firm. Assume you are the company attorney. How would you answer the question posed by the president? Explain your answer.