Problem:
In April, Burt, a New York City resident, asked Amy, a 16-year old paid intern for his company, to go to Tours, Inc. (Tours), a travel agency, and book a vacation trip for him in early June. He told Amy he wanted a 1-week, luxury all-inclusive (except air fare) vacation package at a 5-star hotel in Key West, FL. Burt told Amy he would book his own air reservations. He gave Amy a signed check made out to Tours, with the amount to be filled in by Amy for any necessary payment.
Amy went to Tours and met with Jan, a travel agent for Tours, who told Amy she had the perfect trip for Burt: an all inclusive 7-day package vacation at the oceanfront, brand new 5-star Key West Colony Hotel (Hotel) including meals, state of the art fitness facilities, round trip airfare from New York, and free airport shuttle service, at a total cost of $4000.
Amy agreed the trip was perfect for Burt and told Jan to make the reservations. Jan made reservations for Burt for June1-June 8, 2013 at Hotel, and a round trip reservation from New York City to Key West on Transamerica Airlines for June1, returning June 8. Amy filled in Burt's check for $2000 to cover the required deposit and gave the check to Jan. Amy also signed the brief written agreement with Hotel on behalf of Burt, signing the agreement, "Amy Taylor as representative for Burt Basset." The written agreement with Hotel outlined the details for the vacation package, and the following:
"Cancellation Policy: cancellations prior to 30 days of first day of reservation date, fully refundable; cancellations prior to 15 days of first day of reservation date, 40% refundable; cancellations less than 7 days prior to first day of reservation date, nonrefundable..."
Amy returned to the office and gave Burt a copy of the agreement with Hotel, a receipt for his deposit check and brochures and information about the trip. Burt thanked Amy and told her he was "thrilled with the arrangements" and looking forward to the trip.
On May 27, Burt sent written notice to Tours and Hotel that he was canceling his trip and reservations due to a personal matter and expected a full refund for his deposit. He included a stamped, self addressed envelope for sending the refund to him. Tours and Hotel responded quickly, in writing, that the deposit was nonrefundable.
Burt has consulted you as his attorney about possible lawsuits against Tours and/or Hotel to recover his deposit. Burt believes he has valid legal claims because he believes (1) the agency with Amy was invalid, (2)Tours had no authority to make reservations on his behalf, (3) his contract with Hotel is unenforceable.
Required:
Question 1) What do you advise Burt about all agency and contract issues, about possible lawsuits and whether he can recover his deposit and why?
Discuss, as part of your analysis, the 3 claims above that Burt believes are valid. Provide thorough explanation of the given question.