Tamiko lived in Calgary, Alberta, and owned a cottage on Vancouver Island. Percy, who lived in Victoria, British Columbia, was interested in purchasing the cottage owned by Tamiko. On September 10th, he wrote a letter to Tamiko offering to purchase the cottage and lot for $275,000. Tamiko received the letter on September 15th, and sent Percy a fax offering to sell the cottage to him for $298,000. Percy did not respond to the fax immediately, but on a business trip to Calgary on September 22nd, he spoke to Tamiko about the cottage in an effort to determine if Tamiko might be willing to reduce the price. Tamiko replied that the price was "firm" at $298,000.

When Percy returned to Victoria, he sent a letter to Tamiko accepting her offer to sell the cottage at $298,000. The letter was posted at 11:40 a.m. on September 23rd, but, through a delay in the mail, was not delivered to Tamiko in Calgary until 4:20 p.m. on September 28th. In the meantime, when Tamiko had not heard from Percy by September 26th she offered to sell the cottage to Johnson, who had expressed an interest in purchasing the cottage some time before. Johnson accepted the offer, and the two parties executed a written purchase agreement in Johnson's office on the morning of September 27th. Identify the various rights and liabilities that developed from the negotiations set out above.