Saturday, October 06, 2007

Contract Act_Practical Problems_6

A, seeing a watch in B's shop, marked for sale for Rs. 200, entered the shop, placed Rs. 200 on the counter and asks for the watch. Is B bound to sell the watch ? Give reasons.

No- B is not bound to sell the watch. Price labels on articles only amount to an 'invitation to offer' and not an 'offer'. Placing of Rs. 200 by A amounts to an offer which may or may not be accepted by B. In Pharmaceutical Society of Great Britain v. Boots Cash Chemists Ltd., it was observed that in such cases, there is nothing to prevent a shopkeeper from saying, "I am sorry I cannot let you have this article, it is the only piece I have got and I have already promised it to another customer or there has been a mistake in writing its price or prices have been revised since then."

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