Assume Mary has authority to enter into contracts on behalf of Lara Ltd. However, the constitution of Lara Ltd states that any contract of over $ 50 000 in value requires the prior approval of the board. Mike Smith has previously visited Lara's premises and knows Mary well, having advised her over the past five years on the most economical way to spend Lara's transport budget which he knows is $ 15 000 per annum. Mike has not seen Lara's constitution.

Is Lara Ltd bound by the contract for the purchase of three armoured vehicles entered into by Mary on its behalf? Advise Lara Ltd.