Julia had long wanted to purchase a home in Manly. She is ecstatic because this week, her offer to purchase the perfect home was accepted by the owner. On Friday afternoon, she checked MARS Homeloans website and found that the franchise principal for the company in the Northern Beaches is Charles Gminsky. A photo of Charles smiling face appears in MARS Homeloans website, along with his full name Charles Gminsky and below it, his title, MARS Homeloans franchise principal Northern Beaches, Sydney. Julia calls Charles mobile number and makes an appointment for him to visit her at her place the following Saturday morning. Unknown to Julia, that Friday morning, Charles franchise contract with MARS Homeloans had already been terminated by the company for breach; as a result Charles was no longer connected with the company.

The next morning, Charles drives up to Julias house in a MARS Homeloans Company car. When he comes into the house, he is wearing the shirt with the MARS Homeloans logo emblazoned on the left shirt pocket. He hands out his MARS Homeloans business card to Julia, which contains the same job title as that stated in the website. After discussing Julias lending requirements and assessing her financial capacity, Charles approves a loan for Julia in the amount of $850,000. Charles and Julia sign the loan contract, which is in in the standard form used by MARS Homeloans and bears the companys name. The following week, Julia pays the deposit and calls MARS Homeloans to draw down on the loan. The company informs her that as of last Friday, Charles was no longer connected with the company for the reason stated above. MARS Homeloans tells Julia that the company is under no obligation to honour the loan approval that Charles had given Julia, nor the contract that they entered into for that purpose. Julia comes to you for advice.

Advise Julia on the legal issues presented by the above case. Is MARS Homeloans obligated to honour the loan approval and grant Julia the loan? Explain your answer.