Question:
Goods displayed in a shop with a price tag are an?
Goods displayed in a shop with a price tag are an?
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Think of it as a sequence: Invitation to Offer (Shop Display) $\rightarrow$ Offer (Customer at Counter) $\rightarrow$ Acceptance (Cashier takes money).
Updated On: Jun 30, 2026
- Offer
- Invitation to offer
- Counteroffer
- Promise
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The Correct Option is B
Solution and Explanation
Concept:
In the Law of Contracts, it is crucial to distinguish between a final "Offer" and an "Invitation to Offer" (Invitation to Treat).
• Offer: A final expression of willingness to be bound by certain terms.
• Invitation to Offer: An act that precedes an offer, inviting others to make an offer.
Step 1: Understanding the Legal Mechanism of Shopping.
When a shopkeeper displays goods, they are not making a final binding offer. Instead, they are showing the availability of the product and its price. If a display were an "Offer," the shopkeeper would be legally forced to sell to everyone who walks in, even if they ran out of stock. This would create an impossible legal burden on the seller.
Step 2: Applying Landmark Precedents.
This principle was established in Fisher v Bell and Boots Cash Chemists cases. The "Offer" is actually made by the
customer when they take the item to the counter. The shopkeeper then has the choice to accept or reject that offer. Therefore, the display with a price tag is merely an
Invitation to Offer.
• Offer: A final expression of willingness to be bound by certain terms.
• Invitation to Offer: An act that precedes an offer, inviting others to make an offer.
Step 1: Understanding the Legal Mechanism of Shopping.
When a shopkeeper displays goods, they are not making a final binding offer. Instead, they are showing the availability of the product and its price. If a display were an "Offer," the shopkeeper would be legally forced to sell to everyone who walks in, even if they ran out of stock. This would create an impossible legal burden on the seller.
Step 2: Applying Landmark Precedents.
This principle was established in Fisher v Bell and Boots Cash Chemists cases. The "Offer" is actually made by the
customer when they take the item to the counter. The shopkeeper then has the choice to accept or reject that offer. Therefore, the display with a price tag is merely an
Invitation to Offer.
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