Problems based on Contract and the solution -2

Indian Contract Act, 1872

TANMOY MUKHERJEE INSTITUTE OF JURIDICAL SCIENCE

Dr. Tanmoy Mukherjee

Advocate

 

Problems based on Contract and the solution -2

 

Tanmoy Mukherjee

Advocate

Question-

Mr. Bipul started 'self-service' system in his store. Mrs. Gupta entered the store, took a basket and after taking articles of her choice into the basket reached the cashier for payments. The cashier refuses to accept the price.

Can Mr. Bipul be compelled to sell the said articles to Mrs. Gupta? Decide with relevant provisions of law.

 

Issue-

Mrs. Gupta selects goods in self-service store and proceeds to the cashier. The cashier refuses to accept the price.

Can Mr. Bipul be compelled to sell?

Provision and Legal Principles-

Display of goods = invitation to offer, not an offer.

-In Contract law, goods displayed in a shop with price tags are not an offer but only an invitation to offer

-The customer makes the offer when presenting the goods at the cash counter.

Pharmaceutical Society of Great Britain v. Boots Cash Chemists (1953)-

It was held that in a self-service shop the offer is made by the customer, at the cash counter and the shopkeeper may accept or reject it.

Shopkeeper has the right to either accept or reject the offer.

-Since presentation of goods is merely an invitation, no contract is formed until the cashier accepts payment.

-Shopkeeper is not legally bound to sell unless he accepts the customer's offer.

Contract requires free consent + Acceptance

Sec. 2(a)

When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal;

Sec. 2(b)

When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise;

Sec. 2(e)-

Every promise and every set of promises, forming the consideration for each other, is an agreement;

Sec. 2(h)-

An agreement enforceable by law is a contract;

Here, Acceptance did not happen.

Application of Law to the given problem-

-Mrs. Gupta entered the shop and selected goods →no contract formed yet.

-When she reached the cashier, she made an offer to buy.

-The cashier refused to accept, meaning there was no acceptance.

-Without acceptance, no contract comes into existence.

-Therefore, Mr. Bipul cannot be compelled to sell the goods.

Conclusion-

No, Mr. Bipul cannot be compelled to sell the articles to Mrs. Gupta. In a self-service store, goods on the shelves constitute merely an invitation to offer.

The cashier is free to accept or reject the customer’s offer.

Since, there was no acceptance, no enforceable contract was formed under the Indian Contract Act, 1872.