Council's property services manager, Zac, negotiated an agreement with Top Transport Pty Ltd (Top) for the purchase of a used twelve-seat minibus for the bargain price of $35,000. The bus was to be used by council for transport to staff retreats and training sessions. Zac agreed on all aspects of the purchase over a cup of coffee with the Top sales representative, subject to final approval from the council's chief executive officer Ned. The Top representative promised to keep the offer to sell at the agreed price open for exactly one week. Zac prepared a memo for Ned seeking his urgent approval. However, after two days Zac noticed on Top's website that the minibus was 'sold'. Feeling confident that he would secure Ned's agreement on such a good deal, he immediately rang Top's sales representative and told him the council accepted their offer. However, the representative told him his boss had instructed the minibus to be sold to a favoured client in the meantime. Zac was very angry, complaining that a week had not passed. He advised Ned that the deal had fallen through and that the council would have to pay at least $45,000 to buy a similar vehicle.

identify legal issues and apply legal principles.