1. May went to a boutique and tried on a dress displayed on the shelf of the shop. Then, she felt that the dress was not very comfortable and put it back on the shelf. However, the salesperson insisted May needed to pay for the dress because she already had a contract with the shop.

Tom is the shopkeeper of a pet shop. Last week, Tom lost one of his Persian cats when taking it for bathing at his shop. He immediately put up a notice on the wall of his pet shop stating a reward of $1,000 for return of his cat. Recently, when May walked along the street, she found Tom's lost cat accidentally. Luckily, the cat wore a necklace with details of Tom's name and shop address. After May returned the cat to Tom, she discovered the notice on the wall and demanded the reward of $1,000.

(a) Advise May whether she is legally bound to buy the dress in the boutique. You are required to cite a relevant case in your explanation. (12 marks)

(i) what is the legal issue in this case?

(ii)Define the relevant legal rules

(iii) Cite the case law and analysis

(b) Advise Tom whether he is legally bound to pay the reward to May. You are required to cite a relevant case in your explanation. (10 marks)

2. Ada contracted with Brian to repair her car for $5,000 and to complete the work within one week. Later, Brian told her that the repair work was very sophisticated and Ada promised to pay him an extra amount of $500.

Advise Brian whether Ada is legally bound to pay him the extra amount of $500. You are required to cite relevant case(s) in your explanation.