Council’s maintenance manager Abner had begun negotiations to find a new contract cleaner for the council premises. Finally, he came to an agreement with the manager of Zac Cleaners Pty Ltd (Zac) on the main terms, and typed up some ‘heads of agreement’ on his laptop. As he shook hands with Zac in his office, Abner said “I’ll give this to our lawyer to write up the paperwork”. Abner was later instructed by Council not to proceed with the contract because it had serious misgivings about Zac’s connection to several failed companies. Abner advised Zac the cleaning contract would not proceed. When Zac complained, Abner told him “We never put the contract in writing. Don’t blame me, the Council made me do it.”
What is the issue and law to apply?