Question
1. About a year ago, McMahon Industries Pty Ltd leased a shop at a shopping mall owned by Whitlam Shopping Centre Ltd. The monthly rent
1. About a year ago, McMahon Industries Pty Ltd leased a shop at a shopping mall owned by Whitlam Shopping Centre Ltd. The monthly rent was $10,000. Bill and Sonia, the sole directors of McMahon Industries, entered into a contract with Whitlam Shopping Centre Ltd under which they guaranteed to pay the rent if their company failed to do so.
As it was in financial difficulties, McMahon Industries Pty Ltd had not paid the monthly rent on its shop for the last three months. Whitlam Shopping Centre's credit manager, Margaret, heard that last week Bill and Sonia had put their company into voluntary administration.
Advise Margaret whether Whitlam Shopping Centre can immediately start court action to evict McMahon Industries from the shop for non-payment of rent and whether it can sue Bill and Sonia under their guarantee.
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