1. Harry, Jim and Ken are the directors of HJK Pty Ltd (HJK). Although Ken has never been formally appointed by the board as managing director, he has been running the day-to-day operations of the company since it was registered 10 years ago with the knowledge and acquiescence of the other directors, Harry and Jim. Last month, without telling either Harry or Jim, Ken signed a contract agreeing to buy a new computer system for HJK. Harry and Jim think that HJK cannot afford to buy a new computer system at this time and do not want to go ahead with the purchase.Advise Harry and Jim whether HJK will be bound by the contract to buy the new computer system.
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