1. To what extent, if at all, is it possible to bind or benefit a person under the terms of a contract to which he or she is not a party?

2. Limited Horizons Holiday plc engaged Mandy, a modern languages undergraduate, to act as its repres- entative for its Majorcan Culture holidays for a summer season for a lump sum of £3,000 and all accom- modation, food and travelling expenses. A term of the contract requires Mandy to attend a total of five training days before commencing the job. Some of the training days are held during Mandy's examina- tions and, as a result, she only attends on three days. On 5 June, only 10 days before she was due to fly out to Majorca, Limited Horizons informs her that her services will not be required. Mandy is furious and, although she has been offered alternative employment in the local corner shop working part-time for £7 per hour, she decides to go to Majorca anyway. She spends the entire summer holiday in Majorca, living in the same three-star hotel she would have been based at under the terms of her contract with Limited Horizons. Her total expenses are £4,000. On her return to the UK she writes to Limited Horizons demand- ing payment of the £3,000 lump sum and reimbursement of her expenses of £4,000.

Advise Limited Horizons.