Bonnie was the managing director of Pretender Ltd, a fashion company, which is now in liquidation. Firstly, although Pretender's constitution forbade it from having any dealings with George's Emporium, a year ago Bonnie and the company secretary purchased $100,000 worth of clothes from George's. Bonnie and the secretary had both signed the contract and affixed the company seal. However, the $100,000 was never paid. George's say Pretender has to pay this amount.

Bonnie's also made a contract for Pretender to pay $200,000 to have Pretender's offices and showroom renovated. However, a week before the contract was agreed, all of the company directors had been presented with the annual audit and financial statements. Due to a lack of time Bonnie had not read these statements. It was only after the contract was made and the renovations completed that Bonnie looked at the statements which revealed that Pretender was not capable of paying all of its debts. Now the renovation company wants to claim the debt from Bonnie personally.

Advise Bonnie as to her legal position.

(under australian law)