Funny Company (Pty) Limited appoints Nici as their Chief Executive Officer (CEO). A few years ago prior to her appointment, Nici was found guilty on charges of corruption and sentenced to pay a fine of N$ 50 000 or serve 5 years imprisonment. She paid the fine. Nici attends meetings of the board of directors but does not have voting rights. Nici enters into a lucrative deal with Nambia Limited (Nambia). Six months after the contract was signed, Nambia realises that this deal is not to their favour and wants to cancel the contract. Can Nambia cancel the contract? (8 marks)
It's not possible for Nambia to cancel the contract even though Nici has a bad track record. This is because it took Nambia a long time to realize that the deal was not in their favor.