QUESTION IS A BUSINESS LAW QUESTION

Part 1 You wish to acquire a used vehicle for your 16 year old son. You see a Ford Escap parked on the shoulder of Ring Road with a sign on the windshield:

2013 Ford Escap for sale. $10,000. Will accept trades for any vehicle valued at greater than $20,000. Contact owner at (306) 555-5555.

You text the owner of the vehicle the following message:

Hey, I have a 2010 Ford Mustang worth $25,000 that I hereby trade to you for your 2013 Ford Escap, please tell me how we should exchange vehicles.

Has a valid contract been formed at law? Why or why not? (2 marks)

Part 2 Suppose the owner of the Ford Escap responds to your above message with the following text:

The keys are in the glovebox of the Escap, and the door is unlocked. If you drop off the Mustang at my business at 123 Main St. by the end of the week, leaving the door unlocked and your keys in the glovebox, you can take the Escap.

You immediately attend at the owners place of business and drop off the car in the manner requested. You do not tell the owner that you have done so but you proceed to pick up the Escap. The owner later texts you again, alleging that you have stolen her car. You respond back saying that you had a contract and the Escap is legally yours.

Is there a valid contract at law? Identify the elements of the contract, if they exist. (4 marks)