Ted was also the person involved in signing a lease agreement with Max Property Pty Ltd on behalf of Zamberro Pty Ltd The contract price was $ as it is a twentyyear lease contract. He signed the contract in and the company was registered in June Since registration of Zamberro, Ted had been in the USA where he stayed to complete his law degree. Zamberro did not have any contact with Ted for the last few years and the directors during the time searched for more suitable land around Perth Regional area to construct a new factory for the company. Finally in early directors of Zamberro decided to purchase a new land with a cheap price on behalf of the company. Ted has recently received a written agreement from the vendor of the land in which Ted put a signature as the agent of the yet to be formed company in The vendor made a legal demand of the land price from Ted. In the notice, the vendor claimed that Ted must pay the price of the land as Ted had the intention to make secret profit by purchasing the land from him. This is because the land had to be in fact purchased by Ted as he signed an agreement for sale of the land with Max Property Pty Ltd However, as the land price went up rather than purchasing the land for himself, Ted purchased the land for the yet to be formed company, Zamberro. Ted did not want to comment on this since he did not want this to expose to anyone. Members of Zamberro think that they should remove Ted as a director or seek remedies from Ted. Ted thinks that he is not liable to pay the price of the land as he purchased the land for the company.

With reference to case laws and sections of the Corporations Act Cth advise whether Max Property Pty Ltd can enforce the lease agreement against Ted and whether Zamberro can claim anything from Ted.

Answer rating: 100% (QA)

In this scenario it appears that Ted signed a lease agreement with Max Property Pty Ltd on behalf of ... View the full answer