Now assume Julio has joined Henrys business. The shop is renamed H&J Bikes. Business is great and they are making good money. So much in fact that aer 12 months Julio decides to visit his mum in Barcelona. He arranges for a temporary bike mechanic called Walter to cover for him whilst he is away for a month. Henry and Julio agree to pay Walter $600 a week. Whilst Julio is away, Henry has the opportunity to buy five limited edion road bikes at $35,000 each. Henry is sure he can resell these bikes for $50,000 and make a great profit. Henry signs a contract with the bike manufacturer in the USA and the bikes are delivered the day Julio returns to work aer his holiday. Payment for the five bikes is due within 3 weeks. Unfortunately, Walter was no good at bike repairs and many customers have come back complaining about wheels falling off and accidents. Julio has to do many repairs again for free. This makes cash flow ght. Further, Julio does not agree with the purchase of the five bikes given how much money is involved. Whats worse, Walter wore Julios repair apron each day at work (which said in the top le Julio). One customer came in and asked about sponsorship for his mountain bike compeon and Walter said it would be fine to sponsor first prize with a bike to the value of $5000. The customer had said to Walter wheres Julio when he first walked in. Part B Julio now comes to see you and asks:

3. Is he bound by the contract Henry signed for the five bikes? If yes, outline the nature of the relaonship he has with Henry and explain why he is bound, referring to case law and legislaon

4. Is he bound by Walters statement that the bike shop would sponsor the mountain bike compeon?