Cleo wanted to purchase a lot from Patrick to build a house in Waverley, several kilometres northofOrillia.CleolivesinOrilliaandPatricklivesinWaverley.

In May, Cleo wenttoWaverleyand offered Patrick$ 150,000.00for the property.Patrickrefusedtheoffer.On July7Cleo went againtosee Patrick, and this time Patrick offered to sell the propertyfor$l75,000.00 and saidhewould hold the offer openfor14days at that price.Theyshook handsandCleolefi.

Lateinthe evening of July8,anotherpersonoffered Patrick $200,000.00forthe property. Patrickaccepted. The next morning at about 10:30 a.m., Patrick went to Cleo's home and knockedon thedoor.No one answeredandhe leftaletter stating, "Please take noticethatmy offer to you of July7haslapsed."

Cleodid not see the letter until he came home for lunch at 12:30p.m.Hewasnot at home earlierbecause he had an appointment with his lawyer at 9:30 a.m.At that meetingCleohad requestedthat his lawyerwriteto Patrick as follows: "Iaminstructed by Cleo to accept your offerofJuly 7,tosellat the priceof$175,000.00.Kindly have the contract preparedandforwarded to me."Thisletterwashandedtoacourierat10:00a.m.thatmorning(July9)anddeliveredtoPatrickat2:00

p.m.WhenPatrickreceivedit,herepliedstatingthattheofferwasnolongervalid.

Cleo replied thathehada valid option agreementandconsidered there was nowabindingagreement.

Required:Discuss the issues that willberaised by the parties, the applicable legal principles andlikelyresultofthelegalaction.