Darryl and Julia are both passionate chess players. They meet for the first time at a recent chess tournament. After a short discussion about their love of chess, they decide they should open a chess store together selling exotic chess products to other likeminded chess fanatics. Unfortunately, neither Darryl nor Julia have any money. Julia's friend, Otis, told Julia he had saved some money and was looking to invest it in a business. Julia and Darryl approach Otis and pitch their chess store idea. Otis is completely blown away by the pair's enthusiasm for the idea and agrees to invest $100,000. The three agree that Otis will not receive any interest on his investment, but will get 50% of the net profits generated by the business.

Darryl is given the responsibility of finding a suitable location for the business. He finds a store in Burleigh Heads and promptly enters a lease. As Julia is out of town on business, Darryl signs the lease in his name.Darryl engages a firm of architects to prepare designs for the store.

When Julia returns, she is told about the new premises. She takes her good friend Glenda to check out the new premises. When they enter the store, Glenda trips over a broom that was left lying on the floor and severely injures her leg.

Julia is horrified by the new premises. She doesn't like the location; it is too dark and it is too expensive. She tells Darryl that the whole chess store idea just won't work and she has no interest in perusing the venture any further.

Who is liable for (1) the lease obligations, (2) the architects' fees and (3) Glenda's injuries?