CASE:

On July 23, Carson, who lived in Bytown, wrote a letter to Henri, offering to sell his (Carson's) vintage car for $18,000 . The letter was delivered to Henri in his home in Mount Royal, an hour's drive away, on July 27 . On July 24, Carson met his friend Jack on the street. Jack expressed an interest in buying Carson's vintage car. He offered Carson $18,000 for the car, but Carson said only that he would "give the offer some thought," and promised to advise Jack of his decision. Carson did not tell Jack of his offer to sell the car to Henri. On July 25, while on vacation in York, Jack sent a fax to Carson, offering to buy the car for $18,250 if Carson would deliver the car on July 30 to his farm 20 km west of Bytown. Carson received the fax the same day and, that evening, wrote and mailed a letter to Henri, revoking his offer to sell the vintage car. On July 28, Henri wrote a letter to Carson accepting his offer to sell the vintage car and enclosed a cheque for $18,000 as payment in full. On July 29, Henri received Carson's letter revoking the offer. Carson had business west of Bytown on July 29 and, since his trip would take him past Jack's farm, he decided to deliver the vintage car. Finding no one at home, Carson left the car on a trailer at Jack's farm, and left the keys to the car and a note in Jack's mailbox. The note stated that he had left the car behind the garage. On July 30, Carson received the letter of acceptance Henri had mailed to him on July 28. Carson immediately telephoned Henri to tell him he had sold the car to Jack, but Henri was out of town on a business trip. Carson left a message with Henri's wife and, on July 31, returned by mail the cheque that Henri had sent him with the letter of acceptance. Later on July 31, Carson received a telephone call from Jack, who had just returned from Toronto, requesting delivery of the car. When Carson explained that the car had been delivered on July 29, Jack stated that the car was not behind the garage. Carson then requested Jack to call the police to investigate the theft. Later in August, the police located the car in the possession of a minor and an arrest was made. Unfortunately the car had been badly damaged while in the thief's possession. The estimate of damages was $12,000.

1. Discuss the issued raised in the case keeping in mind the elements of contract discussed in the class?

2. Explain if the contract was valid or invalid between the parties? Describe

3. Describe the rights of the parties (if any).

4. What will be the possible outcome of any litigation if legal action should be taken to enforce the rights of the parties?