Meghan attends a reunion at her former high school and wins the main prize in the raffle. It is an original painting by a contemporary post-modernist naive artist titled Funny Giraffe. It has a market value of $3,000. Because she occasionally suffers from mild giraffobia and doesn't like the painting, Meghan decides to give it to her sisterin-law Kate in appreciation of the free tutoring she has given to her in the past for her finishing, etiquette and deportment lessons. While waiting for Meghan to deliver the painting, Kate decides to sell it because she needs the money to pay an outstanding tax bill. She advertises the painting for sale in a local newspaper on Saturday 1 March for the price of $3,000. She includes her email address and phone number in the advertisement, and gets the following responses: Will leaves a message on Kate's phone on the afternoon of the same day saying he will buy the painting for $3,000. Because Kate hopes to get better offers, she tells Will she wants time to think about it. He agrees to wait for her response by 5pm on Friday 7 March at the latest. Harry sends an email to Kate on Sunday 2 March saying he will buy the painting for $3,000, but specifies that Kate has to respond in writing for him to proceed. Kate tells Meghan that she is negotiating with two people over the sale and arranges for Meghan to deliver the painting to her home on Wednesday 12 March. Kate waits for several days but there are no further calls. She decides to sell the painting to Will. She rings Will at 10am on Friday 7 March and informs him that she accepts his offer. Will tells Kate that, because she took so long to respond, he assumed she had changed her mind. He says he has already agreed to buy a cheaper 3 painting by the same artist called Puzzled Giraffe from someone on the internet by the name of Charlie. Very disappointed with that result, Kate then decides to sell the painting to Harry by sending a letter as requested. At 12pm on Friday 7 March she posts her letter to Harry advising she will sell the painting to him for $3,000. However, Kate then receives a text message from Meghan on the same day informing her that the artist had been arrested by police for stalking a giraffe in thegrounds of a private zoo. Believing that the publicity will increase interest in the painting, Kate immediately rings Harry and leaves a message on his answering machine. The message is that, although she has sent him the letter, Harry should ignore it because she has decided not to proceed. There has been no increased interest in the painting in the days following the zoo incident. But on Tuesday 11 March, Kate gets a phone call from Liz who says that, although she has never heard of the artist, she is an avid collector of giraffe objects. She asks "Is that giraffe painting still for sale?" Kate says "Yes". Liz says "Will you take $2,500 for it?" Kate says "Yes I will". They then discuss delivery of the painting to Liz in exchange for the money. An hour later, Will rings and says his purchase has fallen through because Charlie had destroyed Puzzled Giraffe in disgust at the artist's recent zoo arrest. Will says that he is happy that Kate accepted his offer on 7 March and that the deal can now proceed. On the following morning, Harry sends an email to Kate confirming he received her letter of acceptance and that he will collect the painting on the following day. Kate is upset at the recent turn of events and sits down to work out what to do next. Just then, Meghan rings and tearfully tells Kate that she won't be delivering the painting because she has been the victim of an internet scam and needs the money urgently. Response that addresses the following : a) The legal issue (or issues) in the transaction. b) The legal principles will use to resolve each issue. c) The application of those legal principles to the facts of each issue. d) The concluding advice would give Kate in respect of each issue. Direct your comments to whether each transaction could bind Kate to the other parties under the law of Contracts.