Alvin runs a business selling expensive cars. Last Monday he mistakenly placed a notice on one car indicating that it was for sale for RM5,000 when in fact its real price was RM25,000. Bert later noticed the sign and recognizing what a bargain it was, immediately indicated to Alvin that he accepted the offer and would take the car for the indicated amount. Alvin, however told Bert that there had been a mistake and that the true price of the car was RM25,000. Bert insisted that he was entitled to get the car at the lower price, and when Alvin would not give it to him at the price, Bert said he will sue Alvin.

After Bert had left, Alvin changed the price on the car to RM25,000 and subsequently Cat came in and said she would like to buy the car, but that she would have to arrange finance. Alvin kept silent.

On Tuesday, Del came by and offered Alvin the full RM25,000 cash there and then, and Alvin sold it to Del.

(a)Define what is an invitation to treat [2 marks]

(b) Explain the categories of the invitation to treat with relevant case laws [8 marks]

(c)Advise Alvin as to his rights and liabilities under the law (Explain)[15 marks]

[Total: 25 marks]