Moe Howard and Larry Fine are shareholders and directors of Stooges Sanitizers Ltd.

Joe DeRita, the Company Secretary, is the one who was allowed by the directors to make arrangements to purchase sanitizing chemicals and equipment for the company due to his ability to bargain and his knowledge about contracts.

Mr. DeRita was told that before any acquisition of chemicals or equipment, he must advise both directors and get their permission. On one occasion, Mr. DeRita went ahead without the permission of the directors and acquired by way of credit, chemicals and equipment from Clean All Manufacturing Ltd, who usually supply these items to Mr. DeRita for Stooges Sanitizers Ltd. Mr. DeRita, dishonestly did several sanitization jobs on his own with the equipment and chemicals and then left the company and nobody knows his whereabouts.

The Director of Clean All Manufacturing Ltd, Mr. John Brown, now approaches Stooges Sanitizers Ltd for payment for the items. Moe and Larry tell him that Mr. DeRita breached their rules and so the company does not have to pay him.

Mr. John Brown, comes to you for advice as to whether his company would be able to recover from Stooges Sanitizers Ltd.

Required

Using appropriate case law, provide advice to John Brown.