Instructions

• Please read the background and instructions (below)
• AnswerbothCase AandCase B
• Foreach case:
• Write one paragraph
• Use correct English grammar and spelling
• Discuss the following issues:
• Whois right or wrong, according to the laws of contract? (Imagine that you are the judge, and must follow Canadian law. You must choose one side or the other and explain why.)
• Whatlegal issues, rights and liabilities exist in each case?(Use legal terms discussed in class, and textbook Ch. 3 slides/overview, above.)

CASE A

Billy's Buildings Ltd. owned several cottage lots on Saltspring Island, and on October 10, sent a letter to Carrie's Construction Co. offering to sell the lots for $350,000.Carrie's Construction Co. sent a reply by return mail on October 13 offering to buy the lots for $280,000.

Billy's Buildings Ltd. did not respond immediately, but a week later, on October 20, Billy Barnes, the President ofBilly's BuildingsLtd., met Carrie Cartwright, the President of Carrie's Construction Co. at a charity dinner, at which time Carrie indicated that her company was still interested in the purchase of the cottage lots, and enquired if Billy would be willing to reduce the price of the lots. Billy stated that he was unwilling to sell the lots for less than $350,000.

On October 23, Carrie's Construction Co. sent a letter toBilly's BuildingsLtd., stating acceptance of the offer to sell the cottage lots for $350,000. Due to a delay in the delivery of the mail, the letter was not received at Billy's office until October 28.

In the meantime, Billy's BuildingsLtd. had accepted an offer from Erik's Enterprises Inc. to purchase the lots on October 26. When Carrie heard about this, she started legal proceedings against Billy's Builders for breach of the contract Carrie alleged existed between the two companies.

CASE B

Al's Alloys Ltd. wrote a letter to Sally's Sidings Co. on June 2 offering to sell it 350 tonnes of rolled steel at $3,200 per tonne.Sally's Sidings Co. received the letter on June 3.

A few weeks later, the President of Sally's Sidings Co. checked the price of the particular type of steel and discovered that the market price had risen to $3,280 per tonne.On June 22,Sally's Sidings Co. wrote to Al's AlloysLtd., accepting the offer.Al's AlloysLtd. did not receiveSally's Sidings Co.'s letter until June 30.

Al's wrote back to Sally,refusing to sell the steelat $3,200 per tonne, but expressed a willingness to sell at the current market price of $3,310 per tonne.

Sally's SidingsCo. instituted legal proceedings againstAl's AlloysLtd. for breach of the contract that Sally alleged existed between the two companies.