Mr Golddigger is the managing director of Noble Homes, a property

development company that develops townhouses.Mr Golddigger is authorized to contract up to R500 000 on his own.Any contract in excess of R500 000 must be authorized by the full board of directors.Mr Golddigger has entered into the following contracts on behalf of Noble Homes:

i)Mr Golddigger purchased a gold watch for R20 000, which he now wears;

ii)Mr Golddigger purchased a racehorse for R100 000.The horse is entered into races under the company's name;