Harry McNess is a director and member of Enigma Pty Limited, a private investigation company based out of Brisbane. Apart from Harry, there are three other member-directors in Enigma. The four member-directors each own 25% of the total shares in the company. Enigma's constitution provides that all company contracts that involve an expenditure of more than $75,000 must be signed by a minimum of three directors.

 

Harry has worked for 25 years as a director in Enigma. After working this long, Harry now feels that it is time the company appropriately rewards him for his years of faithful service. Harry believes the only appropriate reward is a luxury boat. He visits a boat dealership and buys a 20-foot yacht worth $150,000. He purchases the boat in the name of the company and signs the contract. The other directors find out and they are incensed by what Harry has done. They wish to immediately void the contract Harry signed with the boat dealership. The problem is that the boat has already been delivered and the dealership does not want it back.

 

Explain whether Harry had the power to sign the contract to buy the boat in the company's name. Is Enigma Pty Ltd. bound by the contract? 

If so, what remedies does the company have against Harry?