Contracts 1 Assignment
DR AMBER v MAGGIE
Selwyn Selikowitz
Group No: 3613
Advice has been sought as to whether or not Dr. Amber has an enforceable contract with Furniture Comfort, and whether she is entitled by law to buy the couch at the discounted price. In order to address the issue, one needs to start by examining each of the four essential elements for contract formation: agreement, consideration, certainty and an intention to create legal relations.[1]
1. NEWSPAPER ADVERTISEMENT
The newspaper advertisement is not an offer but an invitation to treat. In Boots v Pharmaceutical Society of Great Britain, it was decided that ‘a contract is not completed until, the customer having indicated the articles which he needs, the shopkeeper, or someone on his behalf, accepts that offer.’ The items on the shelf of the ‘self services’ shop were treated as offers to treat. This decision was due to the nature of the shop. It is not only inconvenient but also practically and legally unfeasible to be entered into a contract every time one picks up an item from the shelf. Advertisements are presumed to be invitations to treat due to similar reasoning.
The exception to this presumption can be found in Carlill v Carbolic Smoke Ball, where the advertisement was determined to be an offer as there was an express intention to pay money in the event of certain circumstances occurring. This exception doesn’t apply to the present case. The reasonable person would interpret phrases such as “25% off all selected floor items”, and “We beat all competitors” in Furniture Comfort’s advertisements as not indicating a offer to enter into a contract with all readers, but merely inviting them to make an offer. Thus the newspaper advertisement is an invitation to treat.
2. OFFER
Dr Amber saw this ‘invitation to treat’ and responded by visiting Furniture Comfort. Being unhappy with the fabric on the model, she wished to buy a couch with a suitable fabric of her choosing. She made an offer to buy the couch as
Selwyn Selikowitz
Group No: 3613
Advice has been sought as to whether or not Dr. Amber has an enforceable contract with Furniture Comfort, and whether she is entitled by law to buy the couch at the discounted price. In order to address the issue, one needs to start by examining each of the four essential elements for contract formation: agreement, consideration, certainty and an intention to create legal relations.[1]
1. NEWSPAPER ADVERTISEMENT
The newspaper advertisement is not an offer but an invitation to treat. In Boots v Pharmaceutical Society of Great Britain, it was decided that ‘a contract is not completed until, the customer having indicated the articles which he needs, the shopkeeper, or someone on his behalf, accepts that offer.’ The items on the shelf of the ‘self services’ shop were treated as offers to treat. This decision was due to the nature of the shop. It is not only inconvenient but also practically and legally unfeasible to be entered into a contract every time one picks up an item from the shelf. Advertisements are presumed to be invitations to treat due to similar reasoning.
The exception to this presumption can be found in Carlill v Carbolic Smoke Ball, where the advertisement was determined to be an offer as there was an express intention to pay money in the event of certain circumstances occurring. This exception doesn’t apply to the present case. The reasonable person would interpret phrases such as “25% off all selected floor items”, and “We beat all competitors” in Furniture Comfort’s advertisements as not indicating a offer to enter into a contract with all readers, but merely inviting them to make an offer. Thus the newspaper advertisement is an invitation to treat.
2. OFFER
Dr Amber saw this ‘invitation to treat’ and responded by visiting Furniture Comfort. Being unhappy with the fabric on the model, she wished to buy a couch with a suitable fabric of her choosing. She made an offer to buy the couch as