Lila and Binyamin decided that they would like to spend the first few years of their retirement sailing around the world. Because they would be spending so much time on the boat, they decided they should order a new model from the manufacturer so that they could have the exact options and features they wanted. After doing a lot of research and talking to several dealers, they finally picked their dream boat and sat down with a salesperson, Ned, at Sam's Yachts to sign the purchase contract.

The purchase contract was on a single sheet of paper. Its front side included a description of the boat, the $170 000 purchase price and agreed method of payment, and a space for the parties to sign. Directly above the space for signatures was clearly printed, "It is agreed and declared that the terms and conditions set forth on reverse hereof are part of this contract and are binding upon the parties hereto." On the back were terms and conditions.

Lila reviewed the front side of the contract and then flipped the page over to read the terms and conditions. "Oh, don't worry about those," Ned told her. "That's just the manufacturer's warranty that we pass on to you." Lila hesitated, at which point Binyamin told her that if it was just the manufacturer's warranty, then there was no point in the two of them wasting their time reading the fine print. Ned handed a pen across the desk and both Lila and Binyamin signed the purchase contract.

In fact, the terms and conditions on the back contained the following clause (Clause 9):

Manufacturer reserves the right to change the price to Dealer of new Equipment and Dealer reserves the right to change the total sale price of Equipment Purchased and so TOTAL BALANCE DUE to Purchaser.

Several months later the boat was finally ready, and Lila and Binyamin went to pick it up. They were completely shocked when Ned handed them a final invoice for $198 200. The manufacturer's costs had gone up and, based on Clause 9 in the terms and conditions, Sam's Yachts expected Lila and Binyamin to pay the additional $28 200. Anxious to finally get the boat in the water, the couple paid the full price under protest and then went home and phoned their lawyer to see if they could get the $28 200 refunded to them.

If Lila and Binyamin sue Sam's Yachts for the return of the additional fee, will they be successful?

What arguments should they make to convince the court that they should not have had to pay the money?

(Apply a 3-step legal analysis.)

3-step legal analysis:

1. Legal Issue: Identify the relevant legal issues: (Under Canadian Law)

Read and understand the facts to determine the legal questions that need to be answered

2. Applicable Law: Identify and discuss the law relevant to the issue.

Cite the applicable law.

3. Apply Law to Facts: Apply the law to the facts and come to a conclusion or opinion.

Don't apply just common sense. Apply the law!