Baker who is closing down his pastry store on the 2nd day of March sent two separate letters to Kake and Floura and informed them he is selling his high quality convection oven and his fluted tube pan collection for $1.2M. He stated to both parties that the offer would remain open until the 9th day of March and they should let him have their response in the course of post. Both persons received the letters on the following day.

Kake upon receiving the letter called Baker on the 3rd day of March and told him that the items were overpriced as she saw the same combo being sold on amazon for $1M and that she was willing to pay $1M for them. Baker told her "No" and hung up the phone. Kake reconsidered her position and thought that with shipping fees she would ended up paying more than $1.2M for the items if she ordered them from amazon. She called Baker later that day and informed him that she would buy them for $1.2M. Baker informed her that he would not sell her the items. Kake was upset and slammed down the phone with the intention to call her Attorney about the matter.

Floura responded by posting her letter of acceptance to Baker on the 6th day of March with a cheque of $1.2M enclosed and she indicated that she will pick up the items two weeks later.The letter posted by Floura never reached Baker as it got lost in the mail.

Having not received the letter from Floura Baker decided to sell the items to Rolla on the 11th day of March for $1M and 150 pounds of compressed ganja valued at $200,000.00. when Baker arrived home he discovered that the bags contained compressed cassava leaves. He called Rolla and left a voice message on his phone threatening to sue him.

Floura showed up to Baker's pastry store two weeks later ready to take delivery of the items. Baker informed her that he sold the items to Rolla having not received the letter. Floura is quite upset and told Baker that they have a valid contract. She told Baker "You will hear from my lawyer".

Floura's son Salty, has also called Baker and informed him that he will be suing him for breach of contract as his mother was going to give him the oven.

Baker has also received a letter from Kake's Lawyer stating that the items are hers as she has accepted the offer of $1.2M.

Baker was distressed about the whole ordeal and decided to check into SWEET RELIEF HOTEL to de-stress.At the reception desk she was asked to sign a form which contained a clause that stated "SWEET RELIEF accepts no responsibility for theft or destruction of any kind done to property done to any motor vehicle parked in the parking lot". Baker eager to get to the spa to relax signed the contract without reading it.

On his return to the parking lot he discovered that his delivery van was broken into and his Cuisinart Stainless Steel Mixing Bowls with Lids were stolen along with his laptop. He reported the matter to the manager and informed him that he intends to bring action against SWEET RELIEF for the value of his mixing bowls and laptop.

Question 1(a) Advise Baker on all issues arising

Question 1(b)

Explain with the use of decided cases the law pertaining to contractual incapacity.