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Ali is a dealer in second hand goods. He seeks your legal advice on the following matters:- (a) Ali entered into a contract with Ben

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Ali is a dealer in second hand goods. He seeks your legal advice on the following matters:- (a) Ali entered into a contract with Ben for the purchase of an old grandfather clock from Ben for RM200. Ben has since refused to sell the clock to Ali, stating that the price is too low and that the actual value of the clock is RM2,000. Advice Ali whether Ben can insist that Ali buys the clock for RM2,000 (50 marks) (b) At Ali's shop there is a Persian rug displayed with a price tag that reads RM300.00 when in fact the price is actually RM3,000. When Mary comes into the shop and sees the displayed rug, she is interested to buy and brings the rug to the payment counter to key in the purchase. Upon the purchase being keyed in, Mary then discovers the price is actually RM3,000 and not RM300 as displayed. Mary insist that the rug be sold to her at RM300 and threatens to sue Ali for breach of contract. Advise Ali (50 marks)

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