Jack is an art collector. He likes to buy expensive paintings. One day his sister, Mary, invites him over to her house for coffee. During coffee, Jack notices an expensive painting on the wall of her home. Mary tells Jack she inherited it from her best friend. Jack asks Mary, “Would you be willing to sell it to me?” Mary replies, “I actually have it listed online for sale on Ebay for $150,000. However, you can buy it for $140,000.” Jack says, “$140,000 sounds a little expensive. How about $120,000?” Mary responds, “Yes. That’s a deal. I will deliver it to your address by next week.” Jack writes Mary a cheque for $120,000 and gives the cheque to her. On the way home, Jack remembers that the painting was surrounded by a very old and damaged frame. When he gets home, he phones Mary to ask if she could have a new frame put on the painting. Mary says, “Yes, I will have a new frame put on the painting for you. The new frame will be delivered with the painting next week.” When the painting arrives the following week, Jack sees that it is still surrounded by the old frame. Jack is upset. He phones Mary and says that he either wants his money back, or wants the painting re-framed. Advise Mary if she formed a contract with Jack for the sale of the painting. Also advise Mary whether her promise to re-frame the painting can be enforced. In your answer, only discuss the content in Contract Law 1.(use ILAC answer)

The ILAC method stands for Issue, Law, Application, and Conclusion. It is a method used to analyze legal problems. Here is how we can apply it to this situation:

Issue: The issue here is whether a contract was formed between Mary and Jack for the sale of the painting and whether Mary's promise to re-frame the painting can be enforced.

Law: In contract law, a contract is formed when there is an offer, acceptance, consideration, and intention to create legal relations. An offer is a clear statement of the terms on which one party is prepared to do business. Acceptance is a final and unqualified acceptance of the terms of an offer. Consideration is something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances. Intention to create legal relations is the intention to enter a legally binding agreement or contract.

Application: In this case, Mary offered to sell the painting to Jack for $140,000. Jack counter-offered to buy it for$120,000, which Mary accepted. This forms the offer and acceptance. The consideration is the painting and the money. Both parties intended to create legal relations as they agreed on the sale and the price. Therefore, a contract was formed.

As for the promise to re-frame the painting, it can be seen as a modification of the contract. However, it was made after the contract was formed and there was no new consideration from Jack. In contract law, a modification of a contract requires new consideration.

Conclusion: Mary formed a contract with Jack for the sale of the painting. However, her promise to re-frame the painting cannot be enforced as there was no new consideration from Jack for this promise.