Ting, Novia and Penny are directors of Mirage Ltd. Ting is the managing director. Mirage Ltds constitution states the following:

The managing director of the company can only enter into contracts worth below $100,000 without board of directors approval.

In an attempt to salvage Mirage Ltd (that is having financial difficulty), Ting borrows $160,000 from Silly Bank, and she uses 10% the money for the business and rest to pay her household expenses. Hector, the manager of Silly Bank, approved the loan. Hector used to be the managing director of Mirage Ltd. The money is deposited in Mirage Ltds bank account.

1. Can the Silly Bank enforce the loan agreement against the company?

b- Would the answer be different if Hector never acted as managing director of Mirage?

Use ILAC with proper legislations and case to support your answer.