Sunday, October 07, 2007

Contract Act_Practical Problems_7

A & Co., through a newspaper advertisement, announced a reduction sale of ready-made woollen garments and exhibited articles in their showroom with the original and reduced prices marked on them. B, who has read the advertisement, picks up a woollen suit marked Rs. 500 as the original price and Rs. 200 as the reduced price. But when B offers Rs. 200 to the salesman of A & Co., he refuses to accept the amount and handover the suit to B. Discuss the rights of B against -A & Co.

Price quotations and price-tags do not amount to an offer but are only an invitation to an offer. "Therefore, B's picking up the woollen suit with a price tag of Rs. 200 as the reduced price amounts to an offer by B to purchase the same at that price. It remains to be accepted by the seller—the salesman of A & Co. to result in a concluded contract. The salesman has every right to refuse or to accept the offer. Thus, B shall have no remedies.

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