Henry Contractor makes a contract to build a house for LottaBucks. The contract provides that Henry is to take out the building permit as part of the contract. When Henry applies for the building permit from the city, he is informed that the city has just passed a by-law requiring any contractor intending to build within the city limits to deposit $30,000 in cash to ensure compliance with all local regulations. Henry refuses to make the deposit on the grounds that it was not part of the contract and that the hardship involved would make it uneconomical for him to go through with the contract.Lotta Bucks sued Henry for specific performance, and damages for breach of contract in the alternative.

1)Identify the main legal issue to be found in the facts of this case by stating it in the form of a question. (2 marks)

2)What is the legal test that applies to the legal issue you have identified.(1 marks)

3)Make an argument for the Plaintiff (1 mark)

4)Make an argument for the Defendant (1 mark)