Herb Ltd has three directors: Parsley, Sage, and Rosemary. Occasionally Parsley and Rosemary come into the company’s premises but all decisions about running the company are left to Sage, who acts as managing director although he has never been appointed as such. In January, Sage enters into a contract with Supermarkets Ltd to supply organic herbs at a fixed price for a year. Shortly afterwards the price of organic herbs increases enormously, and Herb Ltd seeks to have the contract with Supermarkets Ltd set aside on the grounds that Sage had no authority to act on his own. Advise Herb Ltd if they are bound by the contract.