Pacific Pty Ltd (Pacific) has built a new shopping centre around 30 minutes north of the Canberra city centre. Bella Pty Ltd (Bella) is interested in operating a large discount furniture store in Pacific's shopping centre. In February 2020, Bella's managing director, Stacey Lu, began discussions with Pacific's CEO, David Jackson, about the possibility of Bella leasing a section of Pacific's shopping centre to operate its discount furniture store.

Stacey had several Zoom meetings with David between February to April. By April, Stacey and David had reached agreement about all the main terms relating to the proposed lease, including the annual rent, the rental term (5 years, with two five-year options of renewal), the exact area of the site to be occupied by Bella, and the location of Bella's store within the shopping centre. At a meeting on 15 April, David advised Stacey on Zoom that, "we have a deal....you can ask your lawyers to prepare the formal documents".

In early May, Bella's lawyers sent the written lease agreement to David who would sign on behalf of Pacific. The agreement had already been signed by Stacey on behalf of Bella.

In mid-May, Bella began incurring substantial liabilities of around $500,000 to third parties in the expectation that it would soon be able to operate the discount furniture store at Pacific's shopping centre (these liabilities included contracts with furniture wholesalers in Asia and a major advertising contract). In late May, Stacey emailed David to advise him that Bella had begun incurring major expenses in connection with the furniture store and advised him to sign and return the agreement as soon as possible. David did not reply to Stacey's email.

David did not sign the lease agreement. Stacey had tried to phone David several times in June and July 2020 but he did not answer her calls. In August 2020, Stacey discovers that Pacific is planning to lease the area that was promised to Bella to the operator of a large children's toy store.

Advise Bella whether it can take any legal action against Pacific.