Harry advertises in several magazines that an auction of modern art, including works by several celebrated artists, will be held at the G Hotel, Penang on 5th September 2020. Louise, an art dealer, travels all the way from Johor Bahru to attend the auction, but upon her arrival there, she finds out that it has been cancelled at the last minute. She has spent considerable time and money on attending the auction and wishes to know if she has any right of action against Harry.

Question

(i) Discuss if a contract existed between Harry and Louise, by referring to the elements necessary for a contract to exist.

(ii) Advise Louise if she is now able to sue Harry, with reasons.

(iii) Explain TWO (2) other components that are needed for a contract to be existent.