Invitation to Treat Example

1. Identify the legal issue

The legal issue in this situation is whether John can bring a legal action against the shop for not selling the teddy bear at the listed price of $10, and subsequently selling it to a Japanese tourist for $5.

2. Premise

The general principle of law applicable in this situation is, the display of goods in a shop even with the price tag clearly indicating the price, is considered only to be an invitation to treat and not an offer. The purpose for this rule is to protect the shop from entering into a contract with anyone who may not be in a capacity to purchase the item. For example, a 15 year old child who wants to buy a cigarette which is against the law.

3. Authority

This principle of law was first established in the case of Pharmaceutical Society of Great Britain v Boots [1953] 1 QB 401 Court of Appeal. In this case, the display of control drugs, together with other goods in a pharmacy was considered to be only an invitation to treat and not an offer. The decision in this case was also endorsed in the case of Fisher v Bell [1961], whereby it was held that the display of an offensive weapon (flick knife) for sale which is against the law was not an offer and only an invitation to treat.

4. Argument

Therefore, applying the principles established in these 2 cases above, it can be argued that in this situation, John is the offeror and if the shop accepts his offer then they would be the offeree. The shops position is just an invitation to treat which allowed them to either accept or reject John’s offer. There is no necessity for them to sell the teddy bear at $10 as the listed price indicated.

5. Counter Argument

As a counter argument, John can claim for discrimination in the sense that the shop subsequently sold the teddy bear to a Japanese tourist for $5. Although this can be considered as bad customer service, no law has been breached.

6. Conclusion and Recommendation

As such, John will not succeed against any legal...