Could you please follow this format to answer the question, thank you so much!

ISSUE - identify your immediate problem

PRINCIPLE (or RULE)- identify the principle(s) of law involved.

AUTHORITY - sources of law

APPLICATION - apply the principle(s) of law to the facts given

CONCLUSION - state the result of that application

Question 7 (20 marks) Chew is a horse racing fan and tells Lim, the manager of his construction company, to attend an auction and bid on his behalf for the horse, Hannibal. He told him to spend 'not a cent more than $100,000' on the horse. Lim bids $100,000 but with the auctioneer's commission and GST he receives an invoice for $120,000. Lim is himself very knowledgeable about horse breeding and he thinks that Hannibal could be sold for $150,000. In anticipation of Chew's rejection of the horse, Lim starts negotiations with a buyer willing to pay him $150,000 for Hannibal. Advise Lim as to his legal rights and duties and how he should deal with the matter