Geomedia Inc helps retailers promote sales by arranging to distribute advertising flyers to consumers, usually in the form of newspaper inserts. Red Rose Inc sells arts and crafts supplies across Canada. In the past, it managed its own advertising by contracting with the Regina Post to distribute its flyers. Recently, Red Rose hired Geomedia to act as its agent to distribute flyers. It then emailed an announcement to the Regina Post that said, “From this point forward, Geomedia will be managing all media distribution for Red Rose.” The Regina Post interpreted that email to mean that it would be contracting with Geomedia rather than Red Rose.

The Regina Post subsequently received several orders from Geomedia that involved advertisements for Red Rose. Those orders, printed on Geomedia letterhead, said, “Please bill Red Rose care of Geomedia.” The Post distributed those ads but has not been paid. To make matters worse, Red Rose has gone bankrupt. Is the Post entitled to recover payment from Geomedia?