Question 1

Mark is a sole proprietor trading as 'Mark General Dealers'. Last week he displayed a

'funky' leather jacket in his shop window, with the price marked on it as $5,000.00.

When Peter visited the shop and expressed interest in buying the jacket for $3,000.00,

Mark stated that he could only reduce the indicated price to $4,000.00. But Peter

insisted that he was only willing to pay $3,000.00 and left the shop. Peter could not,

however, resist the temptation to buy the jacket. Barely five minutes after he had left,

Peter returned to the shop to buy the jacket for $4,000.00. But Mark refused to sell it,

stating that he had just realised that the jacket was in fact worth more than the price

marked on it. In the meantime, James also visited the shop and expressed interest in

buying the jacket for the price marked on it. Mark refused to sell it to him.

Advise Peter and James whether Mark owes them any contractual obligation.