Seth is a second-hand car dealer. He places an advertisement in "The Star" newspaper

stating:

'Once in a lifetime opportunity: a one year old, low mileage, Wajar: $40,000 cash. This is

a serious offer - the car will go to the first person who accepts it - valid for one day

only'.

When Ali sees the advertisement he immediately posts a letter of acceptance of Seth's

offer.

Fiona also sees the advertisement and after inspecting the car, offers Seth a cheque for

$40,000, but Seth refuses to accept the cheque and tells her she cannot have the car.

Later in the day Habib asks Seth if he will keep the offer open until he can get to his bank

to arrange a loan. Seth agrees but later in the day when Eric says that he will pay $45,000

in cash for the car he agrees to sell the car to Eric.

On Monday morning Ali's letter arrives, and Habib returns to complete his purchase of

the car. In the afternoon Eric phones Seth to say that he has had second thoughts and no

longer wishes to buy the car.

Consider the above situation with respect to the rules governing the creation of contracts

with the help of decided cases and Contracts Act 1950 of Malaysia.

In particular consider:

(a) The precise nature of Seth's advertisement.

(b) Whether Ali has entered into a binding contract with Seth?

(c) Whether Fiona has any right of action against Seth?

(d) Whether Habib has any right of action against Seth?

(e) Whether Seth has any right of action against Eric?