Katch Ltd is a small private company. Although there are three members of its board of directors, the actual?day-to-day running of the business is left to one of them, Len, who simply reports back to the board on the?business he has transacted. Len refers to himself as the Chief Executive Officer of Katch Ltd, although he has?never been officially appointed as such.?
Six months ago Len entered into a contract on Katch Ltd's behalf with Mo to produce some advertising?material for the company. However Katch Ltd did not wish to proceed with the advertising campaign and the?board of directors have refused to pay Mo, claiming that Len did not have the necessary authority to enter?into the contract with him.?