Tuesday, April 13, 2010

One day, Jay saw a banner hanging in front of her favorite cassette outlet in Alamanda which reads: "BIG SALE! LATEST TOO PHAT'S ALBUM IS UP FOR GRAB WITH 50% DISCOUNT! LIMITED STOCK! HURRY, HURRY, HURRY!" After reading it, Jay immediately jumped in the outlet and said she wanted that album at the said discounted price. But to her disappointment, the shop owner said that the cassette is now sold at normal price. Can Jay sue the shop owner for breach of contract? Discuss according to Contracts Act 1950 and relevant decided case(s).

Jay cannot sue the shop owner for the breach of contract as there is an invitation to offer. It is just an invitation to make an offer on the sale of the products. It is a sort of preliminary negotiation to buy something. Examples include the goods displayed in the shop with price tag, advertisement in the newspaper, and Auction sale and Tender.

Similar case is "Pharmaceutical Society of Great Britain v. Boots Cash Chemist"
Fact: The defendant was prosecuted for selling drugs (poison) without the presence of a qualified pharmacist. The customer selected the drug and put in the basket and has not paid yet to the cashier.
Held: Displaying of medicine in the pharmacy is merely an invitation to treat and not offer. When the customers put the goods in the basket, they offer to buy them and the sale will take place at the cashier’s desk if the cashier accepts the price.

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