Lucy is the managing director of VitaJuice Ltd, a public Australian company which produces organic juices. The company has a constitution, which states that the company may only purchase oranges and lemons for juice production purposes. Further the constitution states that transactions relating to the purchase of oranges and lemons are limited to $100,000 without board approval.

Lucy's cousin, Ming, has been employed as a Purchaser for VitaJuice. Lucy has given Ming her first work task, which is to visit a new fruit supplier called FruitSource Pty Ltd and makes a contract for this season's citrus fruit. When Ming visits FruitSource a representative from FruitSource asks Ming what her role at VitaJuice is. Ming says she is brand new to the company and is still learning the ropes, but she is wanting to prove herself by coming back to her company with a deal.

Ming negotiates a contract for a total cost of $140,000 for the supply of lemons, oranges and grapefruit. This is the biggest purchase order that VitaJuice has proposed to FruitSource, so the representatives from FruitSource take on the opportunity and sign the contract right away.

When the purchase comes to the attention of the VitaJuice Board of Directors, they are very unhappy as the contract stipulates that the fruit supplied by FruitSource is made up of 30% oranges, 30% lemons and 40% grapefruit. VitaJuice does not require any grapefruits, as their juices do not contain this particular citrus fruit.

The Board advises FruitSource that they will not pay for the fruit ordered because Ming did not have the authority to make the purchase. FruitSource disagrees and states that Ming was a representative of VitaJuice and therefore VitaJuice should take responsibility for her actions. VitaJuice disagrees and states that it is actually the responsibility of FruitSource to do their due diligence and check that Ming has the actual authority to make agreements on behalf of VitaJuice.

Advise the Board of Directors of VitaJuice Ltd as to whether they are required to pay the $140,000 to FruitSource Pty Ltd. Consider whether FruitSource was entitled to make the assumption that the Ming had the authority to make this contract.

Refer to specific sections of the Corporations Act 2001 (Cth) and relevant case law in your answer. PLEASE put in relevant links to the references found for your answers when you cross-reference to the sections in Corporations Act 2001 (Cth) and relevant case law.