1. Sally is looking to go on a holiday once international borders reopen. She knows that Lars is a travel agent who has set up his own business and is looking for work so she asks him if he would be able to help her plan and book a trip to Finland in 12months time.

"Sure" says Lars. "I'd love to do that - and I am sure u can lock in some great deals for that. Didd you have anything specific you wanted to do or that I should take into account?"

"Only one thing I don't like hotels. I prefer a Bed and Breakfast in anywhere I stay."

"No Problems," says Lars. "I'll just need your passport and credit card details to book the Bed and Breakfasts - and my fee is 10% of the cost of anything I book. But I'll save you more that twice that with my skills."

"It's a deal" says Sally, appointing Lars as her travel agent.

Lars searches online and finds a great deal for a single room in a three star hotel in Finland: it's super convenient, only $40 a night and while it is listed as a hotel, Lars felt that from the

description and pictures on the website, It could pass as a Bed and Breakfast.

Lars books the hotel In Finland using Sallys name, passport number and credit card details.

When Sally finds out she is furious. "I'm not paying," she says. "I specifically said I didn't want any hotels!"

Unfortunately, the hotel is insisting on debiting the deposit as per the booking instructions

Sally knows you have been taking BSB111 and wants you to advise her (using the ILAC format - but does not need to be a MEMO) asking If she MUST pay. She is onlv interested in AGENCY law in her answer. Focus your answer on the agent's authority. (5 marks)