James and Andrew are former directors of Barwon River Boating Pty Ltd. Fraudulently, the pair execute a written contract as directors of Barwon River for a new $250,000 boat from Jet Boats Australasia Ltd. They had made similar transactions in the past with Jet Boats Australia. Under the terms of the contract, James and Andrew take possession of the boat straight away and payment is due in 90 days.

Barwon River Boating Pty Ltd have not notified ASIC of its change of directors and so a company search still shows James and Andrew as current directors of the company.

What is most probable?

a.The contract will be personally binding on the new directors of Barwon River Boating.

b.The contract will not be binding on Barwon River Boating, under the assumption in section 128(3) of the Corporations Act 2001.

c.The contract will be binding on Barwon River Boating, under the assumption in section 129(2) of the Corporations Act 2001.

d.The contract will not be binding on Barwon River Boating, under the assumption in section 129(2) of the Corporations Act 2001.