Emily and Alex run a car share company, Get and Go Pty Ltd$.$ They are the only shareholders

and executive directors. Emily is the managing director. When Emily and Alex set the company

up in May $2022,$ they invited their accountant friend, Thomas to be a non$-$executive finance

director. Thomas insisted that the managing director have the capacity to bind the company

$2$

to contracts only up to $$60,000.$ This limitation has been included in the company$$s

constitution.

Last month, Emily saw a van that would carry up to $10$ people being advertised at a bargain

price. She had been thinking that the business would be more competitive if it had vehicles

that could carry more people, so she decided to take the opportunity and buy the van. Emily

could not contact Alex at that time because he was in a remote location. Emily went to the

MoonCorp Bank, the company$$s usual bank, and arranged a loan for $$100,000$ to buy the van.

Emily signed the loan document as $$Managing Director of Get and Go Pty Ltd$.$

When the bank$$s accountant asked for another director to sign the loan document, Emily

explained that this was not possible as both Alex and Thomas were unavailable, and the deal

was urgent. The bank$$s lending officer was reluctant to approve the loan as it was for a large

sum for the business, but Emily convinced him it would be fine.

When Alex returned from his trip, he was horrified to find out what Emily had done as the

business was actually in financial difficulty. In a meeting with Thomas, it was decided that the

company would argue that the contract was not binding on Get and Go as Emily had no

authority to bring the company into it$.$

Advise MoonCorp Bank as to whether the loan contract is binding on Get and Go$.$ In your

advice, focus on applying the relevant sections of the Corporations Act $2001($Cth$).$ give answer in IRAC method