Clay advertised his car for sale for RM20,000 in a local newspaper. Chloe saw the advertisement and telephoned Clay offering him RM15,000 for the car. Clay eventually offered to sell the car for RM18,000. To this Chloe said that she would need to drive the car before she could agree to such price. They agreed to meet at Clay's house at a particular time during the weekend, for a test drive. On the next day, Clay sold the car to Yogy for RM19,000. Discuss. (12 marks)

(b) What is counter-offer? Explain the nature and the effect of counter-offer. (7 marks)

(c) Dawn received an unsolicited book by post with a note which said that "...unless the book was returned within 14 days, it would be assumed that the recipient had bought the book for RM70." Advise Dawn.