Terry is selling his Ipad on Craigslist, he posted the following on 13 February at 4pm:

"Ipad mini for sale, 16GB, Space Gray, brand new (unopened box). Won in a competition (evidence can be supplied). Model number MF432LL/A. Located in downtown Vancouver area (you would be required to pick up). Will accept any offer over $100. Please reply to this post if interested."

Ekam replied to the post at 9am on 14 February and made an offer for $110. Terry accepted this offer and made arrangements for Ekam to exchange the ipad for the cash at 10.30am that day. Once Ekam got the ipad home, she realised that it was not the version with "Retina display". She emailed Terry and asked for her money back.

In the meantime, the following activity had taken place:

Sarah replied to the post at 11am on 15 February and made an offer for $140. She explained in her reply that she could not pay the cash until 17 February (as that was her 19th birthday and she was expecting to receive money as a birthday present). Terry would prefer to sell the ipad to Sarah as he will make more money from the transaction. Terry opens a letter in the mail from Robert at 4pm on 16 February (but it was sent at 9am on 15 February). The letter states that Robert is willing to accept Terry's offer for the ipad and that he will pay $140 for it. He asks Terry to write back to let him know when the exchange will take place.

Discussion Instructions

Assume that Terry has entered into a legally binding contract with Robert to sell his ipad. You must discuss ONE of the following:

1. You will be trying to work out the consequences of the following: Robert and Terry find out that the ipad is not a genuine Apple product (neither of them knew this beforehand). Can you identify which legal concept/category from the textbook this would fall into? What effect does this have on the contract? Ask each other questions and try to figure it out.