(MUST INCLUDE: ISSUE, LAW, APPLICATION & CONCLUSION)

Question 1 Albert, Roy and James attended a car auction hosted by K Mart Auctioneers, an auction centre for quality second cars after seeing the advertisements in the news paper. Albert was interested in a Lotus Evora 2018 Model with a starting price of RM280,000. Roy was interested in a Toyota Lexus 2010 model with a starting price of RM140,000. James was interested in a Jaguar XJ 2012 model with a starting price of RM 280,000. The starting prices were listed in the auction catalogue. Albert was furious when he found that Lotus Evora has been withdrawn from the sale. The auction started and Roy bid for the Toyota Lexus. His bid was the highest price bid. The auctioneer informed Roy the auction house decided to withdraw the car because of low price. James started to bid for the Jaguar XJ. The bidding price went up to RM350,000. James decided to withdraw after bidding as the highest bidder and he informed the auctioneer he wants to withdraw his bid before the fall of hammer. But the auctioneer continued till the fall of hammer and James was the highest bidder before he could withdraw his bid. The regulation of auction house says bidders may withdraw before fall of the hammer. With reference to the Contracts Act 1950 and any decided cases, advise Albert, Roy and James as to their legal positions. [Total 20 marks)