ACCA F4 - Corp and Business Law (ENG)

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Part B The law of obligations  3: Formation of contract I 43


5.3.2 Advertisements


An advertisement of goods for sale is usually an attempt to induce offers.


Partridge v Crittenden 1968


The facts: Mr Partridge placed an advertisement for 'Bramblefinch cocks, bramblefinch hens, 25s each'. The
RSPCA brought a prosecution against him for offering for sale a brambling in contravention of the Protection
of Birds Act 1954. The justices convicted Partridge and he appealed.


Decision: The conviction was quashed. Although there had been a sale in contravention of the Act, the
prosecution could not rely on the offence of 'offering for sale', as the advertisement only constituted an
invitation to treat.


The circulation of a price list is also an invitation to treat.


5.3.3 Exhibition of goods for sale


Displaying goods in a shop window, or on the open shelves of a self-service shop, or advertising goods
for sale, are normally invitations to treat.


Fisher v Bell 1961


The facts: A shopkeeper was prosecuted for offering for sale an offensive weapon by exhibiting a flick
knife in his shop window.


Decision: The display of an article with a price on it in a shop window is merely an invitation to treat.


Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) 1952


The facts: Certain drugs could only be sold under the supervision of a registered pharmacist. The claimant
claimed this rule had been broken by Boots who displayed these drugs in a self-service shop. Boots
contended that there was no sale until a customer brought the goods to the cash desk and offered to buy
them. A registered pharmacist was stationed at this point.


Decision: The court found for Boots and commented that if it were true that a customer accepted an offer
to sell by removing goods from the shelf, he could not then change his mind and put them back as this
would constitute breach of contract.


5.3.4 Invitation for tenders


A tender is an offer to supply specified goods or services at a stated cost or rate, submitted in response to
a prior invitation for tenders by the purchaser. When a supplier tenders for a contract they are making an
offer to the purchaser who has advertised a contract as being available.


The effect of an invitation to tender depends on the wording used.


 If the invitation states that the purchaser will require the successful supplier to supply them,
usually for a large 'one-off' supply, then acceptance of the tender by the purchaser will form a
binding contract.


 If the invitation states that the purchaser may require the successful supplier to supply him, then
acceptance by the purchaser of the supplier’s offer creates a standing offer.


A standing offer means that the purchaser does not have to buy any goods from the supplier, but may not
purchase goods from another supplier. Any purchase orders that the purchaser makes are separate
acceptances that form separate contracts, and delivery must be made within the time stated in the
standing offer. Unless there is a binding obligation to keep it open for a certain period of time the supplier
may revoke a standing offer at any time, but must fulfil any orders placed since these created contractual
obligations.

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