Case # 1: Diane is starting up a new magazine that will focus on issues for working women.To encourage subscriptions, Diane has decided to randomly send the magazine to 2,000 women in the metropolitan area for two months at no charge, and then send them a letter stating that if they do not want to become subscribers, they have to call the magazine and cancel their subscription. She asks for your advice on this initiative. As the junior writer for the magazine and a university graduate, who has passed LAW220 course you do not agree with this initiative.

What is the main legal issue? Why?

What would you say to Diane?

Case # 2: Haywood wanted to purchase from Foley certain property in the village of Kempville.Haywood is a resident of Kingston and Foley a resident of Kempville.In May, Haywood went to Kempville to see Foley and make him an offer of $147,500 for the property.Foley refused the offer.On July 7 Haywood went again to see Foley, and this time Foley offered to sell the property for $155,000, and said he would hold the offer open for 14 days at that price.

Early on the morning of July 8, another person called to see Foley and offered him $160,000 for the same piece of property.Foley accepted, subject to a condition for avoiding the contract if he found he could not withdraw from his contract with Haywood.On July 8 in the afternoon, Foley mailed a letter by Canada Post to Haywood stating, "Please take notice that my offer to you of July 7 is withdrawn."This letter was delivered at Haywood's Kingston address the following day, but Haywood was away and did not receive the letter until July 11.

On July 10, Haywood's lawyer sent the following by mail: "I am instructed by Mr. Haywood to write to you and accept your offer of July 7, to sell at the price of $155,000.Kindly have the contract prepared and forwarded to me."When Foley received the letter on July 12, he replied stating that the offer of July 7 had been withdrawn. Haywood brought an action for breach of contract against Foley.

Is there a valid contract between Foley and Haywood?

Discuss each of the actions that occurred in the case and explain its impact in a legal sense. (Consider these legal concepts: offer, acceptance, counter offer, rejection, revocation, formation or existence of a contract, postbox rule)

Case #3: Robert Harrity, the principal of Northeast Yachts, acted as an agent in the sale of a Bayliner boat owned by Malcolm Clark and sold to Margaret Kennedy. As Kennedy looked over the boat, Harrity stated that it had a new motor, a new drive, and a painted hull. The boat was purchased after having the boat surveyed by a marine surveyor. Unfortunately, after five hours of use the motor broke down with several things going wrong. It turned out that the engine was not new but rebuilt and Kennedy sued. Harrity claimed that when he stated that the engine was new he meant it was new to that boat.

What is the basis for Kennedy's complaint?

What are the arguments for the parties?

What would be the likely outcome?