1.Assume all the following facts can be proven. Mary owns and operates a business that sells custom prints of photographs. Mary employed Sam to act as her agent to negotiate a contract with a paper company for a large purchase of paper only. The agreement between Mary and Sam included the provision that Sam could not enter any contract for a purchase price greater than $100,000. Sam met with a representative from the paper company and concluded a contract on Mary's behalf with a purchase price of $110,000.

a.Is Mary bound by the contract? Explain. (5 marks)

b.Does Mary have any cause of action against Sam? If so, what is it? Explain. (4 marks)