Explain whether Mo is entitled to payment from Katch Ltd in respect of the contract entered into by Len
The circumstances in which Katch Ltd finds itself are very similar to that of the Freeman & Lockyer v Buckhurst Park Properties (Mangal) Ltd 1964 case. Len has been allowed by the board to act as if he were Chief Execute Officer and therefore as a third party Mo is entitled to assume that he has the implied authority of one. This authority permits him to bind the company in commercial contracts, so the company will be bound by the advertising contract entered into by Len. Katch Ltd therefore has a liability to pay Mo or be sued for breach of contract.
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