Luke and Jane, a married couple, are planning to migrate to Canada. Luke sent a letter to Paul offering to sell his motor car, a 1950 vintage Mustang, for the price of $3,000,000. Luke said that Paul was to respond by course of post. On receiving the letter, Paul called Luke and informed him that he will purchase the car for $2,500,000.00. Luke told him "that price is an insult to my pocket!" and politely told him he had another call holding and took the call. The other call was from his friend Matthew, who having heard that Luke and Jane were migrating, wanted to know if the Mustang was for sale. Luke told him he would get back to him. On October 25, Paul, having realised that the price Luke was selling the Mustang to him for was a good deal, posted a letter of acceptance to Luke, along with a cheque in the sum of $3 million. On October 26, Luke decided to sell the motor car to Matthew for $4.5 million. Matthew decided to make the payment with 100 lbs of ganja and $4 million cash. Luke agreed with Matthew who paid the $4 million in cash, but Luke is still waiting for the ganja, as Matthew has not handed this over. Pauls letter with the cheque did not get to Luke until November 5. Luke called Paul upon receiving the letter and told him the Mustang was already sold so he was returning his cheque. Paul is threatening Luke 'to take the matter to court', as he said he and Luke had a contract. Jane decided that she will remain in Jamaica for three months to complete packing, while Luke travelled ahead to Canada to secure a lease on the family home. Luke agreed to pay Jane the sum of $100,000.00 per month to take care of expenses in Jamaica, until she joined him in Canada. While they were apart, Jane changed her mind and no longer wanted to migrate to Canada as she recently got a promotion at work. Luke has stopped making the payments to Jane and Jane has threatened to sue Luke stating that they 'had a deal'. Luke is rather confused as everything seems to have gone wrong, based on the transactions with Paul, Matthew and Jane. He has come to you for advice.

The Law needs to be fully explained. Definitions are to be given and cases are to be explained properly. A

summary is required of both facts and decisions for cases are required to get the full marks. You cannot state the

facts alone.the decision of the court alone.

Your application is where you answer the issues .Your

application is where you state yes or no there was a valid offer and explain why using the facts given.

The advice is the summary of the application.

Please note that the majority of the marks come from the Law, cases and your Application. Details are

required.

Advise Luke as to the following: i) Identify the seven (7) issues arising (3 marks)

ii) Discuss the relevant legal principles and cases that support these principles. (34 marks) please do in the detail which would equal 34 and a half marks)