1. Answer the case study below using the law of contract principles. (20 marks) A. Phillip attended his high school reunion in Manchester on September 15. He saw a former classmate Pete and they started talking about the "good old days" when they would drive around Mandeville in Phillip's now 25-year-old Toyota Corolla, attending different events. Pete was shocked to hear that Phillip still had the vehicle. He was now a collector of classic cars and wanted to see the vehicle. Phillip had loaned it to another friend Carey and told Pete he would keep in touch. I On Saturday, September 20, whilst washing the Toyota Corolla motor vehicle, Phillip remembered how excited Pete was about the car and decided that he would call him when he was done to see if he wanted to purchase the car. Phillip called Pete and informed him that he was willing to sell the car to him for $2M and he was to let him know by letter through the post office, if he was interested, no later than September 30. Pete was so excited and responded the following day, by driving to Phillip's home to deliver the letter with the cheque for the $2M as he thought this would make it faster than the post. Phillip was not home when Pete arrived and the letter was left under the front door mat. Unknown to Pete, Phillip was out of town until September 28 and he did not see the letter when he returned. Pete was busy and forgot to call Phillip to let him know what he did. Having not heard from Pete, Phillip sold the motor vehicle to his friend Carey on October 2 Pete contacted Phillip by telephone on October 4 to inform him that he was coming for the vehicle. Phillip informed him that having not heard from him, he sold the motor-vehicle. Pete is quite upset and believes that he has a contract with Phillip and is contemplating suing him. He told Phillip of his intention. Phillip has come to you for advice as to whether or not Pete is correct, Advise Phillip on all legal issues arising. You are to: a. Identify three issues arising (3 mks) b. Discuss the legal principles and apply the cases that are relevant to the case study (10 mks) c. Apply the legal principles to the case study (5 mks) d. Advise Phillip (2 inks)