structions
Maddie placed an advertisement in a local newspaper asking for investment capital in her glacial water business. Stella responded to the advertisement by sending Maddie a letter on October 1 that said that she was willing to invest $5000. Maddie wrote back the next day saying that she was willing to make Stella a partner in her business if Stella was willing to invest $7500. The letter said that Stella had until October 10 to accept. Stella got the letter on October 6, and mailed Maddie a letter the same day saying that she would love to get involved in the business and would send Maddie a cheque for $7500. The letter was received by Maddie on October 9. Stella sent the cheque on October 8 and Maddie received it on October 12. Meanwhile, Maddie mentioned the advertisement to Genie. Genie said she would like to invest in Maddie's business and would be willing to contribute $ 10,000. Maddie sent another letter to Stella on October 5 saying that she had changed her mind and would not be willing to have Stella as a partner. Stella received the letter on October 7. Question 1(a) 10 marks: Is there a contract? Question 1(b) 5 marks: Assume that Stella and Maddie do have a contract. The cheque that Stella sent to Maddie was rejected by Stella's bank because there were no funds in Stella's account. Maddie says that she is now free to deal with Genie because the contract has been destroyed because of lack of consideration What is consideration and is Maddie correct when she says that she has no contract with Stells because there is no consideration? Question 1(c) (2 marks) Genie says that she and Maddie have a contract because she responded to the advertisement, stating she was willing to contribute $10,000. Is Maddie bound to a contract with Genie? Explain fully Question 1(d) (3 marks) Assume that there is a contract between Maddie and Stella. Stella lives in Mexico, and Maddie in Victoria, B.C. What law would apply to the contract? Give the reasoning behind your decision. Question 1(e) (5 marks) It was suggested to Maddie that she include a term in the investment capital contract that any disagreements be settled by ADR. State 3 reasons why ADR is a useful tool for resolving business disputes. Explain the difference between the 2 main processes frequently used in ADR.
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