Energy Foods Pty Ltd isa company involved in the development and sale ofvitamins, health foods and supplements. They are a very big seller in Australia andSouth East Asia.

Joshua is the senior purchasing manager of the company and his assistant is MeiGan. Mei Gan just joined the company recently and her title is assistant purchasingmanager. She recently her own business doing podcasts but that failed spectacularlyThe cost of raw materials has increased significantly because of shortages andsupply issues.
Joshua is authorised to buy raw materials up to $1,500,000 as per the company'sinternal procedures. Any amount above that needs the approval of Cuthbert theCEO.
Given the increasing costs of the raw materials Joshua believes that the currentthreshold is too low and believes it should be $3,000,000 now.
Joshua signs a contract to acquire $2,800,000 of raw materials without getting theconsent of Cuthbert.Mei Gan has a friend who can supply raw materials at a cheap price. She has noauthority to enter into contracts to buy raw materials yet. Instead she forges Joshua'ssignature and send an email accepting the contract from her friend but underJoshua's email address.

REQUIRED:

Advise Cuthbert:

1. Is the contract entered into by Joshua for $2,8700,000 valid and is thecompany bound by it?
2.Is the contract that Mei Gan entered into valid and is the company liable?