Alex Enters into a Contract to Purchase a Large Piece

Alex enters into a contract to purchase a large piece of machinery from Kestrel Pty Ltd. The contract is negotiated and agreed to by James on behalf of Kestrel Pty Ltd. James is Kestrel Pty Ltd's managing director. When James was appointed as Managing Director, Kestrel Pty Ltd's board of directors did not pass a resolution as required by Kestrel Pty Ltd's constitution. Accordingly, James' appointment is defective. Is the contract binding by and against Kestrel Pty Ltd?

A) No, because James was not duly appointed and therefore did not have authority to act on behalf of Kestrel Pty Ltd.
B) Yes, because it doesn't matter that James was not duly appointed. Alex can always assume that a person held out by the company as an officer of the company has been duly appointed and has the authority customarily exercised by such officer.
C) Yes, provided Alex was not aware of the defects in James' appointment, she can assume he has been duly appointed and has the authority customarily exercised by a Managing Director.
D) No, because major contracts such as this need to be signed by at least two directors in accordance with section 127 of the Corporations Act 2001 (Cth) .
E) None of the above are correct.