On September 5 Jones offered to sell his 40 foot sailboat to Smith for $100,000.00.He also told Smith that the offer would remain open until September 30.Smith said he would think about it.

On September 9, Smith went to his bank and arranged for a loan to cover the purchase price.He also engaged some ship's carpenters to repair some minor damage to the hull of the sailboat that he had observed during the negotiations.He planned to have those repairs done after he took title to the sailboat.

On September 10 Smith heard from a friend, Hughes, that Jones had sold the sailboat to a third party.Shortly thereafter, Smith attended at Jones' address and deposited a written acceptance of Jones' offer through the mail slot in the front door of Jones' home.A woman opened the door as Smith was leaving and told him that Jones was out of town but would be arriving on Westjet flight 109 at the Kelowna airport the next morning if Smith needed to talk to him.

The next morning, September 11, Smith attended at the airport and as Jones came down the ramp into the main terminal Smith said "I accept your offer for the sailboat."Jones said "You can't accept.I've already sold the boat to someone else."Smith protested, saying that Jones had promised to keep the offer open for Smith to accept until September 30.Smith further stated that he had acted to his detriment on the strength of Jones' promise and so Jones was bound to sell the sailboat to him.Jones said "No way."

Smith knows that he could sell the boat to a potential buyer for $150,000.00.He sues Jones for damages for breach of contract.

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)