Assignment task: Answer the case study below using the law of contract principles.
Stephen has decided to sell his collection of stamps. He remembered that there was a friend from high school in St. James, named Luke, who was a stamp collector. Stephen had his friend Garth, post a letter to Luke on September 5, informing him that he was willing to sell his collection of stamps to him for $200,000.00. He further wrote "let me hear from you by post" and stated his address in Kingston. Luke responded by post on September 7 and mailed the letter to the address as stated by Stephen. He was so excited and also included the cheque for the $2000,000.00. He informed Stephen in the letter that he would be in Kingston on September 20, so he would collect the stamps at that time. The letter was never delivered to Stephen by the post office as it was lost. Having not heard from Luke, Stephen sold the stamps to Marian on September 15 as Stephen thought sufficient time had been given for a response to be received. Luke went to Stephen's home on September 20. Stephen informed him that having not heard from him, he sold the collection of stamps to the Marian. Luke is quite upset as he believes that he has a contract with Stephen and is contemplating suing him. He told Stephen of his intention. Stephen has come to you for advice as to whether or not Luke is correct. Advise Stephen on all legal issues arising. You are to:
Q1) Identify three (3) issues arising
Q2) Discuss the legal principles and apply the cases that are relevant to the case study
Q3) Apply the legal principles to the case study
Q4) Advise Stephen
Q5) Explain the law of counteroffer with the relevant supporting case.