1. Elizabeth has entered into a contract to have an air-condition system installed into her house by Air Cool Ltd. at a cost of $20,000.00. She pays $2,000.00 and the work commences. Consider the rights and liabilities of Elizabeth and Air Cool Ltd. in relation to this contract if the following alternative events occur when the work is two thirds complete. a. Elizabeth's house accidentally catches fire and is totally destroyed; or b. The government announces that, because of the war in Ukraine, all able bodied men must report for service and Air Cool Lid. has no workers to complete the task because they have gone off to war; or c. The firm making the parts which are integral to complete the system goes out of business and there is no other source of supply. Air Cool Lid. uses the few remaining parts which it has to complete a system for another customer. (25 marks) 2. Paul owns a washing machine which has needed regular repair over the past two years. On the latest occasion on which it breaks down, he phones Jordan, who has mended the machine on previous occasions. Jordan agrees to come out on the basis of an "all-inclusive" charge of $200.00. When Jordan has repaired the machine, he asks Paul to sign a form stating that all work has been completed satisfactorily; that Jordan will replace any parts which break down within three months, but that otherwise Jordan accepts no liability for loss or damage caused by his work. Paul signs the form. The next time that Paul uses the machine, it floods, causing $2,400.00 worth of damage to Paul's wooden floor. When Paul tries to switch it off, he receives a severe electric shock from the casing, which severely burns his arm. (25 marks) 3. Simon in Turtle Bay wrote to Hannah in Hodges Bay offering to sell Hannah his car for EC$20,000.00. On receiving Simon's offer, Hannah telephoned him on Monday morning to accept. Simon however, said that since such a large sum of money was involved, he wanted written confirmation of the acceptance from Hannah. He said that if Hannah got her letter of acceptance to him by 11:00 AM the next day (Tuesday), he would go ahead with the sale at EC$20,000.00. Hannah at once wrote to him and posted the letter of acceptance on Monday afternoon at 2:00 PM. which Simon received at 9:00 AM on the Tuesday morning. In the meantime, however, Simon had received a better offer for his car, and wrote to Hannah withdrawing his offer to her. This letter was posted on 5:00 PM on the Monday evening, and was received by Hannah at 8:30 AM on Tuesday. Discuss Hannah's rights under the principles of Offer and Acceptance. (25 marks)