Michael, a salesman for Martin Bikes Ltd, visits a business in Blairgowrie called "Rent A Bike". Rent a Bike hires bikes to tourists. In the shop, Michael meets George, who says that he is manager of the shop. George orders ten new bikes from Michael on the basis that George will receive a gift of a weekend in London for two. Michael will receive a commission of 5% on the order, but does not reveal this to George.

In fact, the manager, and sole owner, of the shop is Susan, who was on holiday at the time Michael called. When she returns the following week, she is furious to learn about George's order. The business has been having financial problems and does not need more new bikes. Susan says that George did not have any authority to buy bikes for the shop and she is going to cancel the order with Martin Bikes Ltd. George is embarrassed, and does not tell Susan about the weekend in London. He still hopes it will take place because he is planning on using it to impress his new girlfriend.

Susan comes to you for advice. In the mood she is in, she would sue Martin Bikes Ltd, Michael, and George, and also you if you give wrong advice. She has already consulted another solicitor who told her that she must pay for the bikes. Advise her. Consider, in particular, whether Rent a Bike is legally bound in contract to acquire the ten bikes form Martin Bikes Ltd.