Knight is the owner of Armour Heights Subdivision. On September 1, he offered in

writing to sell Lot #3 in the subdivision to Archer for $15,000; on September 2, Archer accepted the offer in writing and delivered her acceptance in person to Knight.

On September 4, Knight telephoned Archer to say that he had just learned that a shopping center was going to be built in the subdivision near Lot #3 and that he now wanted to have $22,000 for each of the lots, including Lot #3. Archer, equally excited about the news, agreed to change the price stated in the written contract from $15,000 to $22,000 and wrote her initials on the date opposite the change on both copies of the contract.

Later, Archer tendered a cheque for $15,000 "in full settlement of the amount owing for Lot #3 per our agreement of September 2." Knight deposited the cheque and sued Archer for an alleged $7,000 balance owing.

a. Identify two legal issues to be found in the facts of this case by stating each of them in the form of a question. (2 marks)

b. Name and then state the legal tests that apply to each of the legal issues you have identified. (4 marks - 2 for each)

c. Make an argument for the Plaintiff (1 mark)

d.Make an argument for the Defendant (1 mark)