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Q.10 Cherry Limited (CL) is engaged in the business of manufacturing and selling of air conditioners. On 15 August 2022, Aslam, one of the directors, with the consent of the chief executive, has entered into a contract on behalf of CL, with Tamarind Limited (TL) as a distributor for the supply of air conditioners in Punjab. The spouse of Aslam holds 5% shares in TL. Under the provisions of the Companies Act, 2017 advise on the enforceability of contract entered into between CL and TL and the consequences which may arise due to the non-compliance of the said contract. (06)