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Butler Engineering (Butler) was awarded a five year contract to design and build a new state of the art hospital (the Project) in St. John's,

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Butler Engineering ("Butler") was awarded a five year contract to design and build a new state of the art hospital (the "Project") in St. John's, Newfoundland. Recognizing that additional expertise in structural engineering was required in order to fulfil the terms of the contract, Green, Butler's President, engaged in extensive discussions with Smith regarding her working on the Project. Smith is a well known structural engineer, recognized in the industry for her attention to detail and her ability to meet deadlines. Following the discussions between Smith and Green, Smith wrote to Green stating she would accept a five year contract with Butler at an annual salary of $250,000. Upon receiving the letter from Smith, Green called her and inquired whether she would consider $200,000 as $250,000 was outside the company's budget. Smith stated that her salary was not negotiable. Immediately following his telephone with Smith, Green sent her a letter (the "Revocation Letter") by regular mail stating that Butler was not prepared to pay a salary of $250,000 and the company was no longer interested in hiring her. At a Board of Director's meeting later that afternoon the Board agreed that Smith would be a significant addition to the Project. Green immediately couriered a letter (the "Acceptance Letter") to Smith agreeing to pay her an annual salary of $250,000 for five years. Smith was on her way out for a job interview at the time the courier delivered the Acceptance Letter so she did not open the letter but placed it in her briefcase. Smith had not yet received the Revocation Letter. Smith had an excellent interview with Global Engineering and they were so impressed with her skillset that they made her a job offer in the interview which she immediately accepted. Later that evening Smith opened the Acceptance Letter and called Green to inform him that she had already accepted a job with Global Engineering. In response, Green stated that she could not work for Global as he had already accepted her offer to work on the Project for $250,000 a year for five years in the Acceptance Letter delivered by courier to her earlier that day. i. Discuss and apply all of the basic elements of a contract and determine whether there is a contract between Butler and Smith. ii. Discuss the law of revocation and its application to the facts. isi. Discuss the Statute of Frauds and its application to the facts. iv. Discuss the three elements Butler must prove to succeed in an action against Smith for breach of contract. V. What remedies may be available to Butler if the contract was enforceable

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