Jess was appointed the managing director of Perfect Plants Pty Ltd ('PP').PP operates a chain of gardening centres throughout Victoria.The board of directors of PP appointed Jess on 1 February 2017 for a term of two years.Another term of her contract restricted Jess from borrowing more than $100 000 on behalf of PP.

Jess's contract expired on 1 February 2019, but nobody at PP noticed and Jess continued to carry out her duties as managing director.

PP has for many years banked with the Cheatem Bank.On 1 June 2019 Jess went to the Cheatem Bank and asked to borrow $200 000 on behalf of PP.Jess informed the bank that the money would be used to invest in casinos in Singapore which would give the company substantial tax benefits.

Jess signed the contract of behalf of PP and Cheatem then advanced a cheque for $200 000 made out to PP.Jess deposited the cheque into a similarly named account at another bank, misappropriated the funds and is now living a life of luxury somewhere in the Carribean.Jess is unlikely to ever return to Australia to face proceedings or repay the money.

REQUIRED:

Is PP bound to repay Cheatem under the loan contract?