QUESTION 3 Meghan's car broke down on the road. She knows that her neighbour Harry operates a car- towing service. She called Harry and asked if he could tow her car to the garage. At the garage, she promised to pay Harry for the service. Meghan fails to keep her promise. Harry sends her a bill for $150 for the towing service. Meghan refuses to pay the bill arguing that she thought Harry towed her car out of friendship. Harry threatens to sue Meghan for the unpaid bill. Believing that Harry may succeed in his claim, Meghan offers to pay Harry $100 if he agrees not to sue. Unknown to her, Harry had told his flat mate that he had towed Meghan's car out of friendship to help out a neighbour in trouble and had never intended to charge her. Meghan sent a cheque for $100 to Harry accompanied by a letter which said: "To settle the matter once and for all, I am only prepared to pay you $100 in full settlement of your account. Enclosed is the cheque." Harry received and lodged the cheque in his bank account. Two weeks later, having thought better of it, Harry sent a letter to Meghan demanding the balance. IDENTIFY all the issues which may arise from the above events and DISCUSS, with reference to relevant statutory provisions and case law, how to deal with each of the issues. 25 MARKS End of Paper