In order to raise money to defend the lawsuit, Zooland decided to sell their prized possession, a 4 year old panda bear named Wendy. On February 2nd, Zooland sent the following letter to the 10 largest zoos in Canada and the United States: "Unfortunately, circumstances have forced us to consider the sale of our prized panda, Wendy. The asking price is $1,000,000.00. Transportation and approvals to be the responsibility of the purchaser. Please contact us if you are interested prior to February 21st." On February 15th, Zooland received the following email from Charles, the manager of the San Diego Zoo: "We have followed the development of Wendy and are extremely interested in acquiring her. Your price seems high; would you consider lowering the price or accepting payments over a 3 year period." On February 19th at 10:00 a.m., Zooland replied: "We regret to advise that we cannot reduce the price. We have received significant interest in Wendy. Please advise immediately if you wish to purchase Wendy on these terms." Charles responded by email on February 19th at 11:00 a.m.: "I need Board approval to accept an offer of this magnitude. The Board meets at 9:00 a.m. on February 21st; I will contact you immediately after the meeting." On February 20th, Charles heard rumours that the Los Angeles Zoo had acquired a panda from Canada. On February 21st at 10:00 a.m., after receiving Board approval, Charles sent the following email: 3 "We are pleased to accept your offer to sell Wendy. We will make arrangements for the permits and transportation and advise when everything is complete." He received the following reply from Zooland: "Thank you for your interest. Unfortunately we have concluded a deal with the Los Angeles Zoo." Charles estimates that it would cost at least $2,000,000.00 to obtain a panda from an alternate source, if one became available. It was very unusual for any zoo to sell a panda and, since it was an endangered species, they could not be trapped in the wild. San Diego Zoo commences an action against Zooland for breach of contract. Required: Examine the issues that will be raised in the litigation, the applicable principles and likely outcome of the legal action

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Issues in the litigation between San Diego Zoo and Zooland Was there a valid contract formed between ... View the full answer