Reference no: EM132489168

The Age of Majority Act in Prince Edward Island provides that the age of majority is 18 years of age in the Province.  Lisa is 17 years old.  She will be 18 years old in June 2020.  She owns a parcel of waterfront land that she inherited from her father who died in 2015.  The land overlooks the Northumberland Strait in Prince Edward Island and has direct access to Sandy's Beach (beside Basin Head, Prince Edward Island).  The land is undeveloped, has no building, cottage, house or other structure on it.  The land is comprised of 2.0 acresin area and has 180 feet along the shore of Northumberland Strait and, of course, the best sand beach in the Province.  Lisa mows the grass on the property regularly during the summer, but has no immediate plans to do anything with the land.

Donald is an architect from New York City in the United States.  He is a non-resident of Prince Edward Island.  He has been vacationing in Prince Edward Island every summer for the past 12 years (spending 2 weeks per year renting a cottage at Sandy's Beach).  He wants to acquire waterfront land in Prince Edward Island and build a modern-style cottage that he has been designing in his head and on paper for the past several years.  He is very interested in acquiring the land from Lisa.  He is aware that Lisa will be going to university next year and she could use the money for her education.  Donald is prepared to pay as much as $250,000 Cdn for Lisa's land, however, he decides that he will try to get the best price he can.

Donald, who enjoys lying on the sand all day with a bottle of Appleton's Dark Rum, has a discussion with Lisa on the beach one day.  It is 4:00 p.m. on a Saturday in July 2019, and Donald has consumed enough rum to be impaired, but is capable of having a conversation.

Donald asks Lisa about her upcoming university education, her future plans, and the costs associated with university.  He then tells Lisa of his plans to build his dream cottage.  He offers to buy Lisa's land, on which he can build his dream cottage and suggests to Lisa that once it is built she can stay at the cottage anytime that he is not in Canada.  Donald offers Lisa $125,000 Cdn. for her land.  He tells her he will pay these funds to her in cash on August 30, 2019.  Lisa is extremely happy with the offer and accepts it.  She shakes Donald's hand.  Nothing is put in writing.

Donald has not applied for any financing as he will use his own cash to pay Lisa.  He also commits nothing to writing, assuming that he will get a Deed for the land from Lisa at the end of August when he pays her $125,000 Cdn.  He has also not considered whether he needs any permits or approvals for acquiring the land.

Over the next 20 days, Donald engages a contractor, John Cahill Construction, to begin building a foundation for what will be his cottage.  The contractor installs a concrete foundation.  The contractor has builder's insurance coverage that will cover loss or injury to persons during the course of construction. Donald plans to build the cottage the following year (summer of 2020).  The foundation is partly covered with plywood to keep the elements out, but the property is not cordoned off, barricaded or protected in any other way.

After the installation of the foundation, a neighbour's 10 year-old-child wanders over to the property and falls into the foundation, breaking her leg and suffering serious head injuries requiring surgery.  The injuriesto her head are serious enough that she may not be able to work productively in the future.

On August 20, 2019 (10 days before closing), Lisa advises Donald that she does not intend to complete the land sale to Donald.  She tells him that they have no deal.

Discuss the potential legal issues (both contract and torn) that may arise in this fact pattern. Indicate whether there is any further information that you need in order to identify legal issues.