Harry is the Manager of the Jonestown Recreation Centre a facility owned by the Jonestown Council. At the Recreation Centre Harry was provided with his own office and wore a uniform provided by the Council which had his name and the title 'Manager' sewn into his shirt. It was a condition of Harry's employment that he could not enter into any contracts on behalf of the Council or approve expenditure exceeding $5,000.

Business at the Recreation Centre had increased, and Harry became increasingly concerned that some urgent improvements needed to be made to the male and female change rooms. Harry had raised this issue frequently with his manager, but nothing had been done by the Council to make the required improvements.

In desperation Harry signed a contract with Fred, a local builder to carry out some minor improvements to the men's and women's change rooms at a cost of $9,500. The contract was signed by Harry 'for and on behalf of Jonestown Council'.

After completion of the work Fred submitted his account to the Council for payment and he received a letter from the Council stating that the account would not be paid as Harry had no authority to make the contract on the Council's behalf.

Required

Advise Fred of his chances of being paid, and by whom.

Support your answer with reference to relevant legal principles and cases.