Custom Canoe Ltd. offered canoes for sale by way of a newspaper advertisement. Carlo, age 17,…

Custom Canoe Ltd. offered canoes for sale by way of a
newspaper advertisement. Carlo, age 17, responded to the advertisement, and
visited the Custom Canoe showroom. There, he saw a canoe that fitted his needs,
and he wrote a cheque for the full amount of the canoe. He took immediate
delivery, put the canoe on the roof of his car, and drove home. The next day,
he set out on a whitewater canoe trip that would take up his full two weeks
vacation. In the meantime, Custom Canoe Ltd. deposited Carlo’s cheque in its
bank, and its bank duly presented it for payment at Carlo‘s bank. Because Carlo
»

Custom Canoe Ltd. offered canoes for sale by way of a
newspaper advertisement. Carlo, age 17, responded to the advertisement, and
visited the Custom Canoe showroom. There, he saw a canoe that fitted his needs,
and he wrote a cheque for the full amount of the canoe. He took immediate
delivery, put the canoe on the roof of his car, and drove home. The next day,
he set out on a whitewater canoe trip that would take up his full two weeks
vacation. In the meantime, Custom Canoe Ltd. deposited Carlo’s cheque in its
bank, and its bank duly presented it for payment at Carlo‘s bank. Because Carlo
had insufficient funds in his account, the bank returned the cheque ‘NSF.’
After Carlo had set out on his vacation, he realized that he had insufficient
funds in his account to cover the cheque, but decided to leave the matter until
his return home. While on vacation, the canoe did not perform as well as
expected, and on several occasions was damaged by rocks in the river. Carlo
pondered what he should do about his purchase that was now seriously damaged.
Advise the parties.

»

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