06 October 2012
In Carlill v/s Carbolic Smoke ball ltd. the company advertises that it will pay 100 pounds to the person who will contract influenza after using smoke balls for a certain period . THIS IS CONSIDERED AS AN OFFER In Pharmaceutical Society of GB v/s Boots Cash Chemists Ltd. the chemist displays the goods with price tag attached to them in a self service shop . THIS IS CONSIDERED AS AN INVITATION TO OFFER .
In both the cases prices have been disclosed then what is the difference ?
07 October 2012
An offer is one ,whose conditions are fullfilled then it becomes a contract. While an invitation to offer is one ,whose conditions are met then it becomes an offer.
* In your question,in the first case the co is giving an offer to use its products with a condition.If such condition is met ie the person gets influenza then the co will have to pay the person.
* In your second question , the shopkeeper is showing his willingness to sell the goods at tagged prices.Here he is inviting customers to purchase at the offered price.If the customer responds to the tagged price then he gives an offer to the seller to sell him the goods at that price.
07 October 2012
Auction is not an offer , rather an invitation to offer. Because the seller is inviting the general public to come and offer the price at which they are willing to purchase. Advertisement of auction stating the minimum price of auction is not an offer.Think practically .... you cant go there and say that "GIVE ME SUCH ASSET AT THE PRICE DISCLOSED BY YOU IN ADVERTISEMENT".
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