ExpertEasy1 markMultiple Choice
ACCA · Question 28 · The law of obligations
Section A
In contract law, goods displayed in a shop window with a price tag are generally considered to be:
Section A
In contract law, goods displayed in a shop window with a price tag are generally considered to be:
Answer options:
A.
A binding offer
B.
An invitation to treat
C.
A counter-offer
D.
A declaration of intent
How to approach this question
Recall the legal status of shop displays established in case law.
Full Answer
B.An invitation to treat✓ Correct
Goods displayed in a shop window or on a shelf are an invitation to treat (an invitation for the customer to make an offer), not an offer themselves. The customer makes the offer when they take the goods to the till.
Common mistakes
Assuming a price tag is a legally binding offer to sell at that price.
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