Goods on display (Offer and acceptance)- FS Flashcards
In contract law, how are goods displayed on shop shelves legally classified?
Goods displayed on shop shelves are considered invitations to treat, not offers. They invite customers to make an offer to buy the goods at the checkout, but do not themselves constitute an offer.
At what stage in a shop transaction is a binding contract formed between a customer and the retailer?
A binding contract is formed when the cashier accepts the customer’s offer, usually by taking payment. This is the point of acceptance, which concludes the contract.
What role does a customer play when presenting an item at a shop’s checkout counter?
The customer is making an offer to purchase the goods. This offer can either be accepted or rejected by the cashier.
Why does picking up an item in a shop not constitute acceptance or contract formation?
Because picking up an item is not an expression of intention to be bound; it merely indicates interest. A contract cannot be formed until the offer is accepted, which typically occurs at checkout.
Can a shop refuse to sell an item displayed on its shelves, and if so, why?
Yes, because the display is merely an invitation to treat. The shop is not legally bound to sell the item until it accepts the customer’s offer at the point of sale.
