Exercise $1$ Peter entered into a written contract with Able Company Limited $($ACL$\text{'}),$ an electronic equipment manufacturer, to buy $10,000$ units of blue$-$tooth smartphones for re$-$sale. It was stated in the contract that 'the colour of the blue$-$tooth smartphones shall be blue'. When the smartphones were delivered to Peter, he selected $10\%$ of the units $($i$.$e$.1000$ units$)$ for quality test. Peter then refused to pay the agreed purchase price on the ground that: $($i$)$ the $1000$ units inspected for quality test were in poor reception; $($ii$)$ all the units contain a label which stated $$non$-$waterproof$$; and $($iii$)$ all the units delivered are in $$white$$ colour. It was also noted that: $($a$)$ before Peter signed the contract, Peter had asked ACL to confirm that the smartphones were fit for mobile communication and ACL had replied to the positive; and $($b$)$ it was orally agreed between Peter and ACL that the smartphones would include the water$-$resistant function. Advise Peter.