New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    In which case it was held that the “goods on a

    display are an invitation, not an offer?
    A Powell v. Lee Correct Answer Incorrect Answer
    B Harvey v. Facey Correct Answer Incorrect Answer
    C Felthouse v. Bindley Correct Answer Incorrect Answer
    D Pharmaceutical Society of Great Britain v. Boots Cash Chemists Ltd. Correct Answer Incorrect Answer

    Solution

    It was observed by the Court that the “goods on a display are an invitation, not an offer” and thus, the Court held that display of goods along with price tags merely amounts to invitation to treat and therefore, if an intending buyer is willing to purchase the goods at a price mentioned on the tag, he makes an offer to buy the goods. Thus, the shopkeeper has the right to accept or reject the same. The contract would arise only when the offer is accepted. Powell v. Lee- an acceptance is treated as valid; it is necessary that the same must be communicated to the offeror either by the offeree or by some duly authorized person on his behalf. Harvey v. Facey - Mere reply of a query is not an acceptance. Felthouse v. Bindley- acceptance should be communicated and such communication should be made to the offeror.

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