Orton Corp Is Incorporated Under the Canada Business Corporations Act

Multiple Choice

Orton Corp is incorporated under the Canada Business Corporations Act.It carries on a business running tour boats on the Bow River in Calgary.The articles of the corporation provide that Orton Corp may not enter into a lease unless the board of directors approves it.Joe,the president of the corporation,goes to West End Real Estate Inc,tells West End that he has authority to enter into a lease on behalf of the corporation,and signs a lease for some office space for the business.The board of directors never approves the lease.Which of the following is TRUE?

A) The lease is not enforceable because the president did not have authority to enter into a lease on behalf of the corporation.
B) The lease is enforceable because leases of offices are transactions within the usual authority of the president of a corporation,and even though the articles provided that the president does not in fact have authority to enter into a lease,the president would have that usual and apparent authority.
C) The lease is not enforceable because leases of offices are not transactions within the usual authority of the president of a corporation.
D) The lease is not enforceable because West End should have obtained proof that the president had sufficient authority to enter the lease on behalf of the corporation.
E) The lease is enforceable because all businesses must lease premises from time to time.