Janice, Grace, and Aly who were fashion designers decide to form a company 'Fashion Designs Pty Ltd'. They decided that they will be the only shareholders and directors of the company. Janice and Grace held 35% of the shares and Aly held the remaining 30% of the shares in the company. Aly is not involved in the process but is promised to get a $30, 000 from the creation of the company. Janice and Grace oversee the registration of the company. Janice oversaw finding a warehouse from which the company is to run the business. Grace gave instructions to Janice not to sign any lease without her approval. Unit 200183 Law of Business Organisations Autumn 2021 pg. 4 Janice found the perfect warehouse for their business after two weeks and she becomes very excited. Besides Janice, there were five other interested parties wanting to rent the warehouse. Janice attempted to get in touch with Grace numerous times but was not able to as Grace on a business trip in Paris sourcing suppliers for their business and agents to market their product. Not wanting to lose the deal, Janice signs the lease with Samuel, the owner of the warehouse for and on behalf of 'Fashion Designs Pty Ltd' and as agents of Grace and Aly. The lease is for a period of four years. The company Fashion Designs Pty Ltd is registered after one week from the signing of the lease and on the first meeting of directors, a resolution is passed not to accept the contract because Grace and Ivy considered that a similar warehouse can be leased at a cheaper price. Advise Janice, Grace, and Aly on

i) their liability if Fashion Designs Pty Ltd decided not to go ahead with the contract after 1 month of the company's creation; and

ii) if the directors ratify the contract.