1.Kelly is a director of Island Properties Ltd.(the Company).He engaged the accounting firm of Westcan Accounting to perform certain professional work on behalf of the Company. When the work was completed, the accounting firm submitted an account for their fees. The Company failed to pay and the firm commenced legal action to collect the account. The Company argued that Kelly was not a managing director (the firm did not have one), and therefore he did not have authority to bind the Company.

a.Is the defence likely to succeed? Discuss Kelly's legal relationship to the Company and what type of authority he had.