New Zealand Law
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You can certainly sue the company to pay for what you have done so far. I don't see any conflict of interest, because as long as this is disclosed, that the head tutor is your sister, then there should not be any issue. You could also claim against them for breaching the contract because you expected to get four sessions, and they only provided two, and have failed to pay this. My suggestion is that you should bring a claim in the Disputes Tribunal, for the money they have not paid, and for the other two sessions which they asked you to do. You can do this on the basis that you have prepared to undertake the catering for those other two sessions, and that there was a verbal contract for four catering sessions. A verbal contract is just as good as a written contract.
Your contract is with the company so they are the ones that you should sue.If you set yourself up to do four catering sessions, but halfway through they have cancelled this, you can say that there was a verbal contract for all of the sessions, and that they should not have cancelled the contract. If there is a problem with the tertiary provider, then that is an issue between the company and the tertiary provider. But your contract is the one with the company for all of the training sessions
Glad to help