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Offers and Invitations to Treat in Contract Law

· Display in shops/Self-service - Pharmaceutical Society of GB v Boots Cash Chemists (1953) - The Pharm Society sued Boots for selling poisons (drugs) contrary to s. 18 of the Pharmacy and Poisons Act 1933. - The Act made it an offence to sell certain drugs without the supervision of a registered pharmacist. – The C of A held that the sale was made at the cashier's desk. – The customer made the offer at the till and the cashier could accept or reject it. - The display at the shelves was an invitation to treat. · Advertisements Partridge v Crittenden [1968] . Mr Partridge placed an advert in a periodical which indictated he had bramblefinches for sale at 25s each. . He was charged with contravention of s.6 of the Protection of Birds Act 1954- offering the sale of a wild bird. · Was this an offer? · Limited Stock Argument Advertisements contd. – Cf American case: Persuasive authority Lefkowitz v Great Minneapolis Surplus Stores [1957] Note: Whether an advertisement will be treated as an offer will be determined by the context in which it appears and the practical consequences of treating it as either an offer or invitation to treat • Auctions - Generally, the bidder makes the offer. - The Sale of Goods Act 1979 (Sec 57) provides that in relation to a sale of goods by auction, the bids constitute offers which are accepted by the fall of the hammer. – But, note: . 'sale without reserve' - Barry v Davies (Heathcote Ball & Co) (2001) · Two engine parts valued at £14,000 each were offered for sale in an auction without reserve. · Highest bid was £200 for each item. · Auctioneer withdrew the goods. • Tender Process This is where people are invited to submit tenders (quotations) to carry out work etc. A tender is a bid for a contract. - Generally considered as an invitation to treat - Spencer v Harding [1870] - But note Blackpool & Fylde Aero Club v Blackpool Borough Council [1990] - A unilateral offer is created when a party promises to do something if another party does a particular (specified)thing. - It imposes obligations on the party promising to do something, but there is no obligation on the other party to do the particular thing required. - If the other party does the particular thing, that is 'performance', that party has thereby accepted the unilateral offer.