Please read the facts carefully and answer all questions that follow.

Terry walked into a curio shop owned by Jenny. She found many interesting and strange items which were on the shelves with price tags laid out below the items. As she walked about, she came across a lovely necklace that was embedded with shiny yellow stones. It was very bright and sparkling, and was sitting on top of a label that read "$10.00". Since it was a small amount, and she was very attracted to the glittery item, Terry took the necklace to Jenny and extended a $10 note to pay for the item.

Jenny gasped at the sight of the necklace, and quickly took it away, saying that it was not for sale. Terry was amazed. She asked Jenny what had happened. Jenny said that the item was her real yellow diamond necklace, and that it was worth more than $100,000. Jenny said that her daughter must have put the necklace on the shelf to annoy her, because she refused her an outing with her friends to Malaysia.

Terry insisted that Jenny must sell her the item, because the display was an offer, and her tender of $10 at the cashier was her acceptance. She argued that since there was already acceptance of a valid offer, Jenny must hand over the necklace to her at $10. Jenny flatly refused to do so. Terry is upset. She wants to have your opinion on the following matters, so that she may consider whether to sue Jenny:-

a) Terry says that the display of the necklace on the shelf with a price tag of $10 below the item was an offer by Julie to sell the necklace at $10. Do you agree with this? Please explain what the nature of the display will be, according to the law of contract.

b) What was the legal effect of Terry's act of extending a $10 note to Jenny at the cashier? Please explain by applying the law of contract principles.

c) Did Jenny have the right to reject Terry's act of extending the $10 note in payment of the price stated on the tag? Please explain why you think so, referring to the contract law principles that you know, and discuss whether, by doing so, Jenny would be breaching any laws.