James has placed an advert in the newspaper which states: Car for sale, 500, the first to see will buy this - contact the number below. Elizabeth has seen the advert and contacts James to arrange a viewing of the car. Upon seeing the car, Elizabeth informs James she is most pleased with the car but offers James 450. James states that he will accept no less than 500. Elizabeth returns the following day and states she is willing to purchase the car for 500. James, however, states that the car has now been sold onto somebody else. Elizabeth is unhappy about this and believes that there is a contract, and that James is in breach of contract.

Advise Elizabeth on all of the following points:

1. What is the legal status of the advert?
2. When Elizabeth is offering 450, what kind of an offer is she making?
3. Is James in breach of contract?

Support and explain your answers for each of the questions with reference to case law authority.

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