1. In contract law terminology , what was the newspaper advertisement placed by Schmidt AND why ? As part of your answer, make sure you state the applicable legal concept and discuss how any relevant facts support the application of that concept to the case problem (1 mark) . 2. In contract law terminology, what was the October 10th e- mail from Hulme to Schmidt AND why ? As part of your answer, make sure you state the applicable legal concept and discuss how any relevant facts support the application of that concept to the case problem (1 mark). 3. In contract law terminology , what was the October 11th e- mail from Schmidt to Hulme AND why ? As part of your answer, make sure you state the applicable legal concept and discuss how any relevant facts support the application of that concept to the case problem (2 marks). 4. In contract law terminology , what was the telephone conversation of October 12th AND why? As part of your answer, make sure you state the applicable legal concept and discuss how any relevant facts support the application of that concept to the case problem (1 mark). 5. Did the telephone conversation of October 13th result in the formation of a contract? Why or why not? Make sure you discuss what each party's statement was and why it was that, citing the relevant contract concepts and referencing the relevant facts to support your conclusions ( 2 marks).

Schmidt was in failing health. He owned and operated Schmidt Sports Collectibles, a small retail sports memorabilia store in downtown Brampton, Ontario. On October 9, he placed advertisement in the Brampton Guardian newspaper which read in part, "assets of longstanding sports memorabilia store for sale, $500,000 or best price." Hulme, who lived in St. Catharines, Ontario, was familiar with the store. On October 10, after seeing the advertisement, Hulme e-mailed Schmidt and said, "Subject to reviewing the books of the business, I will buy the assets for $400,000, $40,000 in cash as a down payment, the balance of the purchase price payable in monthly installments of $15,000 per month." On October 11, Schmidt sent Hulme an e-mail indicating that he would need at least $120,000 cas up front before he could accept a total price of $400,000 for the assets. In the meantime, Schmidt and Hulme made arrangements for Hulme to visit the store and review the business books. Hulme was impressed and said to Schmidt, "The books are definitely in order, I'll get back to you soon." The next day, October 12, Hulme telephoned Schmidt and asked "Would the name Schmidt Sports Collectibles be included in the purchase of the assets?" Schmidt replied that yes he would include the name as part of the asset purchase. By October 13, Schmidt was desperate to sell the business. He telephoned Hulme and said to Hulme, "I've thought it over, and I'll accept your offer for $400.000. with $10,000 as a cash down payment and the balance payable in monthly installments of $15,000." By this point, Hulme had decided that the assets were not worth near what Schmidt wanted. Hulme responded in the telephone conversation that day saying. "I'm sorry, but I have decided not to purchase the assets of your business. Good luck finding a buyer." Schmidt now insists there is a contract