Rakesh is a dealer in afghani rugs. In his shop he has a unique item for sale, with a price tag, displayed prominently, for $ 2000. As his business has been rather slow, he placed an advertisement in the Saturday edition of his local paper stating: 25% Discount! Once in a lifetime opportunity to own a unique, handmade Afghani antique rug for only $ 1500 cash only. This is a serious offer---the rug will go to the first person who accepts it, offer valid for one day only----today Saturday.

When Bud saw the advert, he immediately visited the shop to buy the rug. When he got there, he was the first person to do so; however, Rakesh would not sell it to him for $ 1500 and instead he demanded $ 2000. In respect of the scenario, identify whether the following statements are true or false with proper justification. (8 marks) Q1) The advertisement is a mere statement of intention to sell and is not an offer Q2) The price tag is an invitation to offer, and is not an offer Q3) Since the price tag is displayed prominently, it is a valid offer Q4) The advertisement is likely to be considered an offer , due to the specific wording and unreserved commitment to enter into contract