Answer the following question using the IRAC method. Support your answer with relevant case law(s).

Question One (Total 13 marks)

Skye puts up the following advertisement on the Car Trade website: Proton Prava 1.6. Year 2014, Auto, Metallic Grey. RM20,000 negotiable. Call 010 6183456. Several people responded to the advertisement.

1. Bobby telephoned Skye and went to his house to view the car. He produced a cheque for RM20,000 but Skye said he had changed his mind and refused to sell the car to Bobby. Bobby insisted that there is a contract between them and will sue Skye if he refused to sell the car to him. Advise Bobby. (6 Marks)

2. Carol visited Skyes house to inspect the car on Sunday. On Wednesday she sends an email stating that she wishes to buy the car for RM20, 000 and will arrange for immediate payment. Carol also said in the email that she would presume the car to be hers if she did not receive any response from Skye and will collect the car Friday morning. In the meantime, Skye has sold the car to Kasthuri on Thursday. Carol claims that she has a contract with Skye and will sue him for breach. Advise Skye. (7 Marks)

Question Two (7 marks)

On the community notice board of your campus, you see a poster offering a reward of RM500 for the safe return of a lost Maine Coon cat. While jogging in the local park later that day, you spot the cat, return it safely to the owner and politely ask for the reward money. The owner however refuses to pay the reward of RM500. He says that he knows the law and that there is no contract because you did not call him to say that you are accepting his offer. Do you agree with his opinion? Why or why not?