Erica was tired of driving her parents'car and was looking to purchase a new one. On September 2nd, while browsing Kijiji, she came across the following advertisement:

"Model Year Clearance. Only 3 left! 2021 Tesla Model 3 Performance. No need to haggle - one price/low price policy - only $72,990.00. Patrick's Tesla Ltd., 406 Lake Street, St. Catharines, Phone: 688-1111; E..k@gmail.com"

Erica went to the dealership on September 3rdand was met by Andrew, who worked at the lot. "I'll take one!" Erica exclaimed.

"One what?" asked Andrew. "One of these" said Erica waving the advertisement that she had printed and presenting a certified cheque for $72,990.00.

Andrew read the advertisement and took Erica to see the cars. On the window of each there was a feature sheet listing the options included. The price indicated on the sheet on each of the 3 cars was $76,800.00 plus an additional $1,800.00 for freight and preparation.

"I'll take the grey one" said Erica. Andrew explained that the price on Kijiji was only for the basic model. The 3 carswhich Patrick'sTesla Ltd. was selling had a number of additional options. It would be unreasonable to think that the dealer would sell the cars for $72,990.00 since the price was clearly marked on each car. In any event, Andrew said, the policy was that any deviation from the price on the feature sheet required the approval of Patrick. Patrick would not be in until 9:00 a.m. on Friday, September 6th. Andrew told Erica that her offer of $72,990.00 would be presented at that time. Erica, although unhappy, left her business card and asked for a reply as soon as Patrick arrived. She still thought that Patrick should honour the advertised price and that she was entitled to one of the cars at that price.

On September 5th, Patrick returned, received the note from Andrew and at 5:30 p.m. emailed Erica at her work email as follows:

"Will accept $72,990.00 for the car."

Erica did not receive the email at that time since she had left work for the day. That evening (September 5th) at 9:30 p.m. she delivered a letter to the dealership which read:

"Will pay $76,800.00 plus freight and preparation."

Patrick received this letter on September 6that 9:00 a.m. He called Erica's office. She was not yet in and he left a message with her secretary that they had a deal for $76,800.00 plus freight and

preparation and emailed a confirming letter at 9:05 a.m. At 10:30 a.m. Erica arrived at the office. She read, in order:

(i) the email sent by Patrick on September 5th;

(ii) the email sent by Patrick on September 6th;

(iii) the message left by Patrick with her secretary.

She then called Patrick and told him she was accepting the offer for $76,800.00, although she still thought there was a binding contract for $72,990.00. Patrick told her that in his opinion they had a binding contract for $76,800.00 plus $1,800.00 for freight and preparation.

Required: Explain whether there is a contract for the purchase and sale of the car and, if so, at what price. Be certain to include and explain the applicable principles as part of your answer.