business law

Question 2 Assume that Martha, with the assistance of Lucy (her new agent), negotiates directly with Walter for the sale of the cottage. The cottage was listed and advertised for sale for $435,000.00 by Lucy who suggested that this price might elicit multiple offers. Walter's initial offer was for $425,000.00 with a closing date of August 1. The standard form offer that he submitted included in paragraph 12, on the reverse side, the standard provision that on completion the Purchaser would receive vacant possession of the cottage. Walter intended to use the cottage starting August 1. 1 Martha wished to make a counteroffer and discussed with Lucy whether it should be for $430,000.00 or more. They decided that the counteroffer would be for $440,000.00 since a number of people had expressed interest in seeing the property and Lucy suggested that there may be other offers forthcoming. I As well, Martha had agreed to rent the cottage for the months of August and September to Sally for $2,000.00 per month and suggested that the completion date be changed to October 1. Her agent, Lucy, suggested that they leave the completion date as August 1, but that she would change the offer so that Walter would assume Sally as Tenant for August and September. 1 Lucy prepared the counteroffer, deleting the words "on completion" in paragraph 12 and substituting "on October 1". The paragraph setting out the purchase price was amended to read "Four Hundred and Thirty Thousand Dollars ($440,000.00)". There were no other changes. Martha signed the counteroffer as instructed by Lucy without reading it. Lucy gave Walter the counteroffer but did not discuss the amendments. Walter signed to accept the offer and paid the depos deposit of $5,000.00. When Walter was signing the closing documents at his lawyer's office, his lawyer asked him to confirm that the purchase price was $440,000.00 and that Martha would retain possession until October 1. Walter disagreed, saying that the purchase price was $430,000.00 and vacant possession was to be provided on completion. Walter said that he was unaware that paragraph 12 on the reverse side had been amended and pointed out that the wording of the purchase price was written as "Four Hundred and Thirty Thousand Dollars" although the written number did say $440,000.00. Required: (i) Discuss whether there is a binding contract and, if so, the terms of the agreement. Be certain to explain the applicable legal principles as part of your answer. (ii) Assume that there is a binding agreement. On July 31, there is a fire and the cottage burns to the ground. How does this affect the rights of the parties