The constitution of Worldwide Trading Pty Ltd requires every transaction over $10 000 to be approved by the board of directors. While his co-directors are on leave during the Christmas break, Michael, the managing director, orders goods valued at $50 000 from his friend Mark. Mark is also the secretary of Worldwide. On their return, the other directors refuse to pay for the goods. Select the correct statement from following:

Select one:

a.

The contract is valid and enforceable as Mark is entitled to assume that the company's constitution has been complied with.

b.

The contract is not enforceable as Mark knew that the assumption that the company's constitution had been complied with was not correct.

c.

Worldwide must pay for the goods as third parties can always enforce every contract entered into on behalf of a company.

d.

Worldwide need not pay for the goods as a company cannot enter into contracts with its officers.