Because of the shortage of supply of timber and other building materials, Joshua the purchasing director found it difficult to source the materials at a reasonable price. He managed to find one supplier Sandalwood Pty Ltd who was prepared to provide Metrix with the building materials at a reasonable price. To "thank" the director of Sandalwood Pty Ltd, Joshua signed a contract to transfer a block of land owned by Metrix to the director of Sandalwood Pty Ltd at no cost. Joshua signed the contract and also forged the signature of Victoria on the contract.-

Kathy Di Mella, the senior architect is nervous about the financial viability of Metrix and therefore her employment. She has always harboured ambitions of running her own architectural practice. During the year Victoria inadvertently left her computer on and Kathy downloaded the client list of Metrix. She established a new company called Melldik Services Pty Ltd to provide architectural services and contacted the clients from the lost she downloaded.

One of Metrix's clients advised Mario that Kathy's company had contacted them.

Issue they seek advice on:

1. Is the contract valid and is Metrix liable to transfer the land to the director of Sandalwood Pty Ltd.
2. Can Metrix take action against Joshua?
3. Can the directors remove Joshua?
4. Can Metrix take any action against Kathy?