Section B: Scenario-based Questions

Answer the following question using the IRAC method. Support your answer with relevant case law(s).

Question One(Total 13 marks)

Skye puts up the following advertisement on the Car Trade website: Proton Prava 1.6. Year 2014, Auto, Metallic Grey. RM20,000 negotiable. Call 010-6183456.Several people responded to the advertisement.

1. Bobby telephonedSkyeand went to hishouse to view the car. He produced a cheque for RM20,000 butSkyesaid he had changed hismind andrefused to sell the car to Bobby.Bobby insisted that there is a contract between them and will sue Skye if he refused tosell the car to him. Advise Bobby.(6Marks)

2. CarolvisitedSkye's houseto inspect the caron Sunday.On Wednesdayshesends an emailstating that she wishes to buy the car for RM20, 000 and will arrange for immediate payment. Carol also said in theemailthatshe would presume the carto be hers if she did not receive any response from Skyeand will collect the car Friday morning.In the meantime, Skye has sold the car to Kasthuri on Thursday.Carol claims that she has a contract with Skye and will sue him forbreach.Advise Skye.(7Marks)