Assignment task:
Technology Ltd designs and manufactures Technology keyboards. The managing director of Technology Ltd is Williams and the board of directors has given him the authority to undertake any transaction on behalf of the company up to a spending limit of $350,000. Any expenditure above this amount requires the approval of the board of directors. The other directors of the company are Major Quick and Slow Buck.
Williams is on a business trip when she meets Elizabeth Smith, an inventor who has designed a revolutionary method of inputting data into Technology that could make the keyboard obsolete. Mary believes she has to act urgently to protect Technology Ltd.'s interest so she agrees that Technology Ltd will pay Elizabeth Smith $400,000 to buy his invention. When Mary returns to Technology Ltd, the company's research and development staff determine that Elizabeth Smith's invention is not a threat to keyboards as Mary thought it might be. The other directors are angry with Mary for breaching their expenditure limit instruction and order that Technology Ltd should not pay Elizabeth on the grounds that Mary had no authority to act.
Required:
With reference to Corporations Act and case law, determine whether Elizabeth Smith would succeed in enforcing the agreements against Technology Ltd. You must follow the 4-steps process to answer the question.