*AUSTRALIAN CONTRACT/COMPANY LAW*

The board of directors of Big Hopes Pty Ltd ('Big Hopes'), a property development company, has appointed Rodney as its managing director. The constitution of Big Hopes requires any contract over $100,000 to be approved by the board of directors before being entered. Rodney enters into a contract for the purchase of a block of land for $500,000 from Larry without getting the prior approval of the board of directors. The board refused to ratify the contract when it learns of it. Advise Larry. Your answer must include case law (where relevant) and the provisions of the Corporations Act 2001