Alice and Beatrice are directors of Zabirna Ltd. Alice and her friend Clarice executed a contract under company seal, to purchase a $1,500,000 residential apartment from Douglas, on behalf of Zabirna Ltd. Alice and Clarice both witnessed the company seal as directors of Zabirna, despite the fact that Clarice was not a director of Zabirna Ltd. Douglas suspected that Clarice was not a director of Zabirna Ltd, but did not ask Alice or Clarice any questions about this.

Select one:

a.Zabirna Ltd is not bound by the contract .

b.Zabirna Ltd is bound to this contract, because of the s129(6) assumption of theCorporations Act 2001.

c.Zabirna Ltd is bound to the contract, because of the s129(5) assumption of theCorporations Act 2001.

d.Zabirna Ltd is bound to the contract, because of the s129(3) assumption of theCorporations Act 2001