This set the scene for much of today’s dealings with vending machines. If
a case involving one of these machines were to arise, it would no doubt be
viewed that the company that owns the machine makes an offer to sell,
which is accepted by the customer activating the machine in some way. This
is the point of no return, and must therefore be the point at which the
contract takes place.
Promotional campaigns and collateral contracts
The idea of a second, or collateral, contract arose regarding auctions sales.
It was also an important issue in the following case regarding a promotional
campaign.
Offer and acceptance 37Thornton v Shoe Lane Parking (1971)
Mr Thornton parked his car at a car park which had an automatic
barrier. He paid, took his ticket and parked his car. When he returned
there was an accident in which he was injured and his car was
damaged. He sued the car park owners, and they tried to rely on an
exemption clause within the car park. It therefore became important to
know the exact time at which the contract to use the car park took
place. It was held that the car park owners were making an offer by
having the car park ready, and holding the machine in readiness for use.
The customer made an acceptance by using the machine – here by
taking a ticket and paying.Apply this case to a vending machine which you know, or a local car park
system.Esso v Commissioners of Customs and Excise (1976)
The case concerned the giving of ‘free’ coins with petrol, as part of a
sales promotion by Esso in 1970. The Commissioners were responsible
for collecting purchase tax (the forerunner of VAT), and they claimed
that Esso were liable for unpaid purchase tax in respect of a promotional
campaign where football World Cup coins were given away.
Following the win by England in the 1966 World Cup, Esso used the
anticipation of the 1970 tournament to advantage in giving away
almost worthless coins as collectors’ items. Advertisements read,
‘Going free at your Esso action station now – World Cup coins.’
Motorists were thus encouraged to buy petrol from Esso stations, on
the understanding that they would receive one ‘free’ coin for every four
gallons of petrol purchased. The question arose as to whether the coins