Last year, Simonebought a car on August 15 and insured it with the Rebel Alliance Insurance Company, for whom Darthwas the local agent. On the following July 29, Darth telephonedSimoneabout renewing her policy and learned she was on vacation at her summer cottage. Acting on behalf of Rebel AllianceInsuranceCompany, Darthwrote toSimoneat her cottage:

"As you know, your car insurance policy with us expires on August 14. We

will renew this policy on the same terms unless notified to the contrary by

you. You may sign the application form enclosed and pay after you return

to the city."

On her way back from her holidays on August 16,Simonestruck and injured a pedestrian with her car. The pedestrian claimed $100,000 damages fromSimoneand, on referring the matter to ReliableAlliance InsuranceCompany,Simonewas informed that her policy of insurance had expired without renewal on August 14.

QUESTIONS

Please use proper legal terminology and ensure that you thoroughly explain how the legal issue or issues apply to the case. Use Canadian caselaw (from the textbook or class) to explain your answers.

1.What is the legal issue or issues arise upon these facts? (10 marks)

2.What are the legal principles that apply to the issue or issues?(10 marks)

3.Is there any additional fact which, if provided, would provide a clear solution to this problem? (10 marks)

4.You are Darth's supervisor at Rebel Alliance Insurance. Write a brief memorandum to Darth explaining the principles of offer and acceptance in Canadian Contract Law.(10 marks)