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Maju Jaya advertises in a local daily calling suitable contractors to submit tenders for the development of an IT project. The advertisement stipulates that the

Maju Jaya advertises in a local daily calling suitable contractors to submit tenders for the development of an IT project. The advertisement stipulates that the lowest tender will succeed. Contractor Murah submits the lowest price at RM10 million and Contractor Mahal tender comes second lowest at RM11 million. However, Maju Jaya thinks that Contractor Mahal is in a better position to carry out the work than Contractor Murah.

Maju Jaya then invites Contractor Mahal to consider reducing his tender to RM9.5 million. Contractor Mahal rejects the invitation. Maju Jaya then offers the work to Contractor Murah. He however rejects the offer arguing that his offer comes to an end when Maju Jaya offers the work to Contractor Mahal.

Based on the case above, discuss the followings in an essay format:

1) Discuss whether Maju Jaya's advertisement an 'Offer' or 'Invitation to Treat'?(2.5 Marks)

2) Discuss whether is it true Contractor Murah has made an "acceptance" to the offer by Maju Jaya?(2.5 Marks)

3) Is there any contract exist between Maju Jaya and Contractor Murah?(2.5 Marks)

4) Is there any contract exist between Maju Jaya and Contractor Mahal?Who breached the contract at the end?(2.5 Marks)

Guidelines: * Invitation to Treat is different to offer. Invitation to Treat invites party to make an offer and it is not intended to be binding.

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