Director

Dear Sir,

could you please help?

Tork is a director of Petra Ltd, a company that deals in weird and wonderful gadgets. His co-directors and shareholders, Pratik and Tariq agree that he should buy some kaleidoscopes up to a total value of £ 200. Tork finds a supplier of Kaleidoscopes, Fun Ltd, that is offering a particular model of Kaleidoscope new to the market. Tork thinks that the product is fabulous and places an order with a value of £ 27%. when the invoice arrives, Pratik and Tariq refuse to pay it because Tork has exceeded his authority. Which of the following best summarizes the legal position?

A Petra Ltd is not bound because Tork has acted beyond his auhority
B Fun Ltd cannot enforce the contract although it acted in good faith. Tork’s authority was limited ad Fun Ltd should have asked for evidence of his authority
C Petra Ltd is bound because Tork has implied authority to enter into the contract
D Fun Ltd can enforce the contract because it deals with Petra Ltd in good faith

The answer provided by the book is C( Kaplan) with not explanation

I do agree with answer C, however I think the D is also correct. As Fun Ltd has dealt in good faith, it will be able to enforce the contract.

Could you please explain why D could not be considered also correct is I am wrong with my consideration?

Thanks

Gabbi