Adeles Farm Flowers Pty Ltd (Adeles) has been considering buying a new truck for transporting fresh flowers to market. The truck usually costs $150,000, but one of the companys senior employees, Daisy-May, told the companys board of directors about a local garage owner, Mr Rose, who had a secondhand model for sale for $115,000. Although some board members were keen to buy the secondhand truck, others were unsure - which resulted in lengthy delays since the companys constitution requires purchases over $100,000 to be agreed on, and signed by all 8 board members.

When, after 3 weeks of discussions, the board still hadnt made a final decision about buying the truck, Daisy-May became worried that somebody else might buy the truck. To avoid any further delay, Daisy-May went to see Mr Rose and, wearing her Adeles work uniform & Manager name badge, paid for the truck in full by using her Adeles company cheque book and Manager stamp.

Hoping to surprise the board with the new company truck, Daisy-May drove the truck straight head office where she was shocked to learn that the (now very angry) board of directors, decided to lease a truck instead. Upon realizing what Daisy-May had done, the board quickly phoned their bank and cancelled the cheque.

The next day, Mr Jones was heard yelling at the board of directors How dare you cancel that cheque! You owe me $115,000 for my truck! How was I supposed to know your company manager didnt have permission to buy things over $100,000! You better pay me by Friday, or youll hear from my lawyers!

QUESTION: With reference to CA s 129, analyse whether the company is legally bound under the contract with Mr Rose (Also consider whether the Board of Directors can rely on the exceptions under CA s 128