Miracles always be with you

Can Jay sue the shop owner for breach of contract?

Posted by snowie , Tuesday, February 9, 2010 8:47 PM

Case: One day, Jay saw a banner hanging in front of her favorite cassette store outlet in Alamanda which reads: " BIG SALES! LATEST TOO PHAT'S ALBUM IS UP FOR GRABS 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 cases(s).

Solution:
From the banner hanging in front of the cassette store which reads:" BIG SALES! LATEST TOO PHAT'S ALBUM IS UP FOR GRABS WITH 50% DISCOUNT! LIMITED STOCK! HURRY, HURRY, HURRY!" is just the invitation to treat by the shop owner, NOT an offer. It is just an invitation to make an offer from shop owner. And also, it is a sort of preliminary negotiation to buy something.
Due to it is just an invitation to treat(ITT), there is NO legally binding contract between Jay and the shop owner. Thus, Jay cannot sue the shop owner for breach of contract because there is not an agreement enforceable by law.

Relevant cases:
1) 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 but them and the sale will take place at the cashier's desk if the cashier accepts the price.

2) Fisher v. Bell (1961)
Fact: The defendant displayed flick knives in his shop windows. He was then convicted of a criminal offence of offering such knives for sale.

Held: Display of any goods with a price tag on it in a ship window was not an offer but rather it was an invitation to treat.