Adam is a second hand /used car dealer.He places and advertisement in the Saturday Edition of his local paper stating;

'Once in a lifetime opportunity: a one year old, low mileage, Nissan special: $7,000cash.This is a serious offer - the car will go to the first person who accepts it - valid

for one day only'

When Ben sees the advert he immediately mails a letter of acceptance of Adam'soffer.

Carol also sees the advert and after inspecting the car offers Adam a cheque for$7,000, but he refuses to accept the cheque and tells her she cannot have a car.

Later in the day Dave asks Adam if he will keep the offer open until he can get to his bank to arrange a loan.Adam agrees but later in the day when Eric says that he

will pay $8,000 in cash for the car he agrees to sell the car to Eric.

On Monday morning Ben's letter arrives, and Dave returns to complete his purchase of the car.In the afternoon Eric phones Adam to say that he has had second

thoughts, and no longer wishes to buy the car.

Instructions

Consider the above situation with respect to the rules governing the creation/formation of

contracts.

In particular

(a)the precise nature of Adam's advertisement(2 marks)

(b)whether Ben has entered into a binding contract with Adam(2 marks)

(c)whether Carol has any right of action against Adam(2 marks)

(d)whether Dave has any right of action against Adam(2 marks)

(e)whether Adam has any right of action against Eric(2 marks)

You must take each matter as it presents itself, and decide what the outcome would be for each of the parties. You need to state reason(s) for your answer rather than

giving yes or no answers.