Reference no: EM132342667 , Length: 1200 Words

Assignment Questions -   

QUESTION 1 - Luz is 17 years and 9 months of age and just finished the Grade 11 in Red Deer, Alberta, which is 150 kilometres south of Edmonton. Luz lives with her parties.

Luz decides to leave school at the end of Grade 11, once she hears Edmonton Electric Co. Ltd. seeks an apprentice. Luz enters into a contract that states that she shall be an apprentice of the company in the Edmonton office. Luz enters into a contract to lease a small apartment from Bernard Lord in Edmonton because she must leave her parents' home in Red Deer, Alberta. The contract provides that her tenancy shall last a minimum of 12 months, after which time she can cancel the agreement by giving notice of 30 days.

Four months later, when Luz is 18 years and 1 month of age, Luz decides to finish high school. She cancels the apartment lease agreement, arguing that because she made the contract when she was a minor, it is not binding on her. Edmonton Electric Co. Ltd. is left without an apprentice.

Does Edmonton Electric Co. Ltd. have a cause of action against Luz or her parents? Does Bernard Lord have a cause of action against Luz or her parents? Focus on whether the parties involved have the capacity to contract and, if so, whether any resulting contract is binding. Be sure to discuss any defences that the parties may raise.

QUESTION 2 - On January 20, 2018, Broderick, a local antique dealer, received a letter from Celeste which stated:

'I have decided to retire to Oak Bay and need to sell much of my cherished furniture that you admired on your recent visit. I know that you particularly liked the Federal Period table and I want to offer it to you for $8,800, which I'm sure you will agree, is a very reasonable price. Let me know as soon as possible if you wish to go ahead with the purchase as there will no doubt be others interested in acquiring this beautiful table.'

Broderick immediately sent the following fax message to Celeste:

'I certainly wish to accept your offer but would find it difficult to find the $8,800 in one payment. Would you be prepared to accept payment in four monthly instalments of $2,200?'

Having heard nothing further for five days, on January 25, Broderick mailed a letter via Canada Post to Celeste purporting to accept the offer to sell the Federal Period table at the initial price of $8,800. After mailing the letter, Broderick purchased a copy of the local newspaper and was interested in an advertisement placed by Manuel detailing a Chippendale table for sale at $6,000. After inspecting the Chippendale table, Broderick decided it was worth far more than $6,000 and that this Chippendale table would be a better purchase than the Federal Period table offered by Celeste. Broderick immediately sent a text to Celeste's cellphone to request that Celeste ignore the letter that would arrive the next day because he had changed his mind about purchasing Celeste's table. When Celeste arrived home on the morning of January 26, she checked her text messages and then opened her mail, including the letter from Broderick.

Celeste insists that Broderick made a binding contract to purchase the Federal Period table.

Is there a binding contract between Celeste and Broderick? In your discussion, be sure to fully analyse the formation of an offer, or lack thereof, and the defence(s), if any, that Broderick may have to Celeste's arguments.