Cyrus wishes to purchase a coffee shop in Mount Victoria, a small town in the Blue Mountains. He feels anxious to ensure that he would obtain a new lease for the premises where he is to run the business after the existing lease of the business premises expired. James, the landlord, indicated verbally that he would do this provided Cyrus complied with the existing lease. On 26 July, he sent a letter to Cyrus confirming this representation. Cyrus purchased the business and James refused to grant a new lease even though Cyrus had complied with the terms of the existing lease.

Assume that you are Cyrus solicitor and that he has asked you for legal advice. Advise him as to what contractual liability, if any, he has in the above circumstances, citing relevant statute and case law authority, using the ILAC format.