[Law of Contract]

ABC Ltd is an insurer. ABC Ltd ran an online promotion stating that new customers taking out insurance policies before the 1 June will save 20% on their annual premium. Lily, a prospective policyholder, wished to take out a household insurance policy with ABC Ltd. Prior to the 1 June, Lily went online to purchase an insurance policy but the 20% discount originally promised was no longer available. Lily subsequently challenged ABC Ltd as to why the 20% discount was no longer available. ABC Ltd stated that the promised premium reduction had been removed from the online promotion before the 1 June and therefore it would not apply to Lily's insurance premium.

(a) Explain, with justification, the legal nature of the online promotion. Refer to one relevant case in support of your explanation. (6)

(b) Explain, with justification, whether ABC Ltd was legally entitled to remove the discount in the promotion before the 1 June. (4)

It is hoped that there is a detailed solution. Thanks a lot!!!

For (a) , you can skip the relevant case, but ans it in detail.