Jason runs an oilfield service business and is looking to lease some light towers and generators in Grande Prairie which can operate in harsh winter conditions. He requires the equipment to allow him to work at a site throughout the night. Jason has been negotiating lease terms with a local rental supply company, owned by Todd. The company's website advertises that the specific equipment he is interested in renting can operate in "very cold conditions for sustained periods of time". The total price for all of the equipment is $600 per day, a price which Jason is happy to pay if it allows his company to work around the clock. They agree on a 3 month lease term. After Jason inspected the equipment Todd presented him with his company's standard form of rental agreement. Jason reviewed the contract and both parties signed it.

Question 34 (4 points) Jason runs an oilfield service business and is looking to lease some light towers and generators in Grande Prairie which can operate in harsh winter conditions. He requires the equipment to allow him to work at a site throughout the night. Jason has been negotiating lease terms with a local rental supply company, owned by Todd. The compa ny's website advertises that the specific equipment he is interested in renting can operate in \"very cold conditions for sustained periods of time". The total price for all of the equipment is $600 per day, a price which Jason is happy to pay if it allows his company to work around the clock. They agree on a 3 month lease term. After Jason inspected the equipment Todd presented him with his company's standard form of rental agreement. Jason reviewed the contract and both parties signed it. What are the four legal requirements for a valid and enforceable contract? Are all four legal requirements satisfied in this case? Identify each or explain why the legal requirement is not satisfied. (4 points) Question 35 (5 points) Todd, the owner of the rental company knew that the equipment was brand new to the Canadian market and had never been tested in our climate. He really had no idea how it would withstand our cold climate but was excited to have someone try it out. He was able to make a greater profit off of this specific manufacturer's product. While Jason had been inspecting the equipment, he asked Todd if it would stand up to the cold winter weather because every hour his equipment is down costs his company several thousand dollars. He also told Todd he was working five hours down a service road and needs this equipment to be reliable. Todd replied that this manufacturer's equipment would work \"perfectly in our climate\". Jason was satisfied and brought it out to his site. On the first night in operation, the temperature was -27C. The light towers kept failing and at around 6 pm the generator shut down. Jason drove for four hours until he had cell reception and tried calling Todd's rental company. They were closed and not open again until Monday. Jason was able to speak with a customer service representative of the manufacturer, who conveniently had twenty-four-hour service, and was informed that the equipment was not approved for operation below -10C. Assume that there is a valid contract between Todd and Jason. What legal principle would you recommend Jason argue if he brought a claim to Court and what would Jason have to prove (i.e. what is the test for that legal principle)? (5 points) Question 36 (1 point) Is the contract between them enforceable? Why or why not? (1 point) Question 37 (3 points) Jason was upset with the situation and decides to head back into Grande Prairie for the weekend. He met up on Saturday night with friends at Maddhatters. After several pints of beer, he tells his friends about his situation with the equipment and all the issues he's been having. One of the friends, Narnia, happens to rent similar equipment. She pulls out her phone and shows the current inventory. She had exactly what he needed! Jason is clearly intoxicated to everyone at the table. Jason and Narnia then agree on a price, rental period and shake hands. Has Jason entered into a contract with Narnia? Why or why not? (3 points) Question 38 (3 points) Two days later, Narnia calls Jason and tells him that she has decided to lease the equipment to somebody else. Jason once again is furious and is going to contact his lawyer Erik. Assume that the Narnia and Jason have entered into a legally binding contract. Name three remedies Jason may seek from a court? (3 points)