Phillip has decided to sell his collection of vinyl records. He remembered that there was a friend from high school in St. Mary, named Luke, who was a collector of records. Phillip had his friend Garth deliver a letter to Luke on September 5, informing him that he was willing to sell his collection of vinyl records to him for $200,000.00. He further wrote "let me hear from you by post" and stated his address in Kingston. Luke responded by post on September 7. He included the cheque for the $2000,000.00 and he was so excited and mailed the letter to the address as stated by Phillip. He informed Phillip in the letter that he would be in Kingston on the 20th September, so he would collect the records then. The letter was never delivered to Phillip by the post office. Having not heard from Luke, Phillip sold the records to a DJ, Lucky B on September 15 as Phillip thought sufficient time had been given for a response to be received. Luke went to Phillip's home on September 20. Phillip informed him that having not heard from him, he sold the records to the DJ. Luke is quite upset and believes that he has a contract with Phillip and is contemplating suing him. He told Phillip of his intention. Phillip has come to you for advice as to whether or not Luke is correct. Advise Phillip on all legal issues arising. You are to:

a. Identify three issues arising (3 mks)

b. Discuss the legal principles and apply the cases that are relevant to the case study (10 mks)

c. Apply the legal principles to the case study (5 mks) d. Advise Phillip (2 mks)

2. Explain the law of counteroffer with the relevant supporting case. ( 5 marks)