contract cases of invitation to treat

SEMESTER 3
BA-LLB

1. FIRAC WITH EXPLANATION AND EXAMPLES
FOLLOWING CASES

1 Carlill Vs. carbolic smoke ball company
2 HARRIS V NICKERSON [QUEEN'S BENCH DIVISION
CASE}
3 FISHER VS BELL
4 Partridge vs. Crittenden

2. FIRAC


Carlill Vs. Carbolic Smoke Ball Company



Facts:

The facts of this case are given below:

Carbolic smoke ball Company manufactured and sold Smoke Ball medicine
to cure influenza. It was introduced because influenza disease Flu
pandemic results 1 million people death in 1888 and 1889.

Company gave advertisement in several newspapers to use smoke ball
medicine three times a day in two weeks as directed to get cure from
influenza cold others.

If Smoke Ball medicine doesn't cure from influenza within two weeks as
directed The Company will give reward of 100 pounds. For that company
deposited 1000 pounds in Alliance bank.

So Louise Carlill bought smoke ball medicine and used it as directed thrice
a day in two weeks. After 2 weeks she continued suffering and not cured
by medicine.

For that she filed suit to recover reward of 100 pounds in the competent
court.

3. Issue

Whether the advertisement was promotion of medicine or offer of that
medicine to public




Reason

Advertisement aims promotion of medicine not offers for public:

Acceptance was not informed and communicated by plaintiff.

There was no as such consideration which is necessary to frame a contact
as per provision of contract law therefore, there is no contract


APPLICATION

NILL


Conclusion

It was held in this judgment that it was quite clear offer because it had
mentioned reward for ineffective medicine which do not cure user.

In that regard defendant had deposited 1000 pounds in Alliance bank which
made consideration.

So Louise Carlie got reward of 100 pounds by company.

In case it was laid down that the performing of act is Acceptance.


Explanation

4. In the above discussed case, distinction between unilateral offer and
invitation to treat has been discussed from every aspect.

Unilateral contract is formed when one party (the promisor) makes an
offer to pay another party (the promisee) in return for the performance of an
act, and the promise gives his or her assent by performing the said act.

A reward offered for providing certain information is an example of a
unilateral contract.




The examples of unilateral contract are given as under:

Example 1

Mr. White lives in south state of California. He has pet dog named Shaggy.
On 14 Feb 2018, after party he came back to his house. He found that
Shaggy was missing. He tries a lot to find it but remained
unsuccessful. So he gave Advertisement that who will find his pet Shaggy
he will give reward 1000 dollars. Next day evening, Grey Bacon found and
returned white's dog. So Mr. White gave reward of 1000 dollars to him.

In this example Mr. White was bound by offer not public. The action of
person of Grey Bacon was acceptance to his offer.

Example 2

HEC gave advertisement in Daily Dawn and Jang newspaper in which it
announces essay competition on Independence Day with topic “Role of
Youth in Development of Pakistan”. First three positions holder will be
given cash prize of 75, 50 and 25 thousands respectively. It should be
typed and sent Karachi office of HEC till 14 august 2018.
This advertisement is offered to whole public but they are not bound. In
such case HEC is bound by its offer.

5. Example 3

Islamia University announces scholarship for those who secured above
80% in yearly exams
It is offer for all students who appear in exams.
Islamia University is responsible.








FIRAC



HARRIS V NICKERSON [QUEEN'S BENCH DIVISION CASE}



Facts:

The defendant is an Auctioneer gave advertisement for sale of brewing
material, plant and office furniture at Bury St Edmunds for 3 days.

Plaintiff, a commission broker in London went for Auction Sale at Bury St.
Edmunds for purchasing “Office furniture ".

He attended Auction sale but “Office Furniture" were not put in Auction
Sale and same was withdrawn.

Action was taken to recover damages for loss of time and railway fare
expenses

6. Issue:

Whether Advertisement constituted Offer or Invitation to treat.

Whether at auction sale withdrawn of goods made defendant liable to
plaintiff in eye of court

Reason

By Plaintiff:

Plaintiff attended Auction sale at special priority to purchase office furniture
which were advertised in London Newspaper. At auction sale the
advertised office furniture were not put for sale.

So the plaintiff suffered loss of time and railway fare expenses
It is prime duty of defendant to give notice of withdrawal of goods.


By Defendant

Advertisement was given with intention of getting offers by public
whosoever want to purchase items.
Plaintiff was not bound to sell goods to whoever attended auction sale.
He was not bound to put all items for sale. A reference was given from
Warlow vs. Harrison.


Application

Void
NILL


Conclusion

The court held that advertisement was merely declaration of intention to
sell goods mentioned. It appears invitation of offer or Bids by public to
purchase items.

7. In above case in it is mentioned that auction sale is treated as invitation to
treat in contract law

Definition

It is a sale of one or several items in which buyers bid how much they are
willing to pay.

Auction has one seller with many buyers competing with one another.
An auction sale is complete when the auctioneer announces its completion
by the fall of the hammer
Mostly auctioneer is not seller but agent of seller...

Example 1

Virat kohli Captain Indian Cricket Tram invited bids for buying his famous
Bat. Auction sale for Bat starts then all buyers’ bids higher in competition to
purchase famous bat. At last Mr. Akash Rajput had highest bid of 115
million Dollars. The Auctioneer put hammer on highest bid.


Example 2

Royal Palace of Mumbai call Auction and invited bids from public for
purchasing Palace. Auction Sale starts at Royal Club. Auction starts at 500
million dollars. All buyers tried but Mr. Raj Advani purchased by highest Bid
of 2500 million dollars.

Example 3

Muhammad Khan got loan from NBP Ghotki on gold for 18 percent interest
per year. He could not returned loan became bankrupt. So NBP call
Auction Sale of Gold 50 kg. The proceedings starts from 5 lac .Highest bid

8. was 33 lac by Abdul Saboor. So NBP returned loan with interest by Action
sale of Gold.








FIRAC


FISHER v. BELL

Facts

The facts of this case are given below


A retail shopkeeper displayed flick knife with tag price beside window in his
Bell's music shop. He was charged with offering for selling restricted
weapon a flick knife, contrary to s. 1 (1) * of the Restriction of Offensive
Weapons Act, 1959.

Earlier this appeal in this court the cause of issue was dismissed by sub
ordinate court.

Issue

Whether the exhibition of that flick knife in the window with the price label
constituted an offer or invitation to treat provided within the statute.

9. Reason


The restricted weapon flick knife tag with price of 4 shilling placed at
window had object to attract the buyers to sell out it.

A knife which had a blade which opened automatically by hand
pressure can be dangerous for life.

It does not constituted an offer for sale by reason that it was
placed with price tag in a shop

Applications

Section. 1 (1) * of the Restriction of Offensive Weapons Act, 1959.

Any person who manufactures, sells or hires to sell weapons shall be guilty
of an offence and shall be liable to imprisonment for a term not exceeding
three months or to a fine not exceeding fifty pounds.

Ordinary law of contract

The display of an article with a price on it in a shop window is
merely an invitation to treat. It is in no sense an offer for sale the
acceptance of which constitutes a contract

Prices of Goods Act, 1939,
Goods and Services (Price Control) Act, 1941


Conclusion

If these weapons are restricted to sell then why it is manufactured. So firstly
manufacturing weapons may be prevented or stopped

10. In view exposing or displayed items are offers but legally displayed items
attract or invite public or customers to make offer.


So that displayed knife was just aimed to invitation to treat not an offer for
sale. So defendant was released.



Explanations

In the above case the merely Distinction between offer and invitation to
treat is given.

Invitation to treat is merely process of negotiations the terms and conditions
before legal binding relationship,, (contract)
It is just exposure, suggestions, display and way of attracting public to
make offers. The acceptance of invitations to treat just make an offer not
contract.

Display of goods and items constituted invitation to treat for public.

Examples of invitation to treat as of displaying items.


Example 1

Hayat Kareem went to chase value center for eid shopping. Second floor
was filled and designed for displaying women collections. She chooses 3
dresses of red, light blue and yellow Colures of elegant design from
displayed dresses.
Displayed items were invitation to treat..

Example 2

Shayan went to English Boot House at Tariq Road. Shoes were displayed
with tag price and size. He chooses black office shoes. After getting
satisfied by checking size then bought it by paying labelled price (amount).

: Display shoes invites offer by public.

11. Example 3

Aslam went to city bakers shop at Gulistan e johar for buying Birthday cake
for his son Musa. Cakes were placed and displayed of many flavors
chocolate strawberry etc. He chooses chocolate cake and bought it by
paying Rs 950 at counter.
Cakes were displayed as invitation to treat




CONCLUSION

All in All when goods which are displayed in the shop or place by
shopkeeper, the willingness or acceptance of customer to purchase goods
from shop constituted Offer. After shopkeeper have right and power to
accept or refuse to offer made by customer.

12. FIRAC


Partridge vs. Crittenden





Facts

Mr. Arthur Partridge gave advertisement in magazine “Cage and Aviary
Birds “as classified Advertisement for sale of bramble finch cocks and
hens at price of 25 shillings each.

Mr. Thomason ordered one ABCR Bramble finch hen and sent enclosed
payment of 30 shilling.

Partridge sent bramble finch hen in box and received by Thomson in
front of Anthony Crittenden (RSPCA) officer.

13. Partridge was charged by Crittenden on behalf of RSPCA (Royal
Society for Protection of Birds) illegally selling wild bird against sec 6(1)
of protection bird act 1954

At trial, Partridge was found guilty then he appealed conviction

Issue

Whether advertisement was constituted offer or invitation to treat

Whether Interpretation of "Offer for sale” in criminal law than contract
law

Reasoning

A wild Bramble finch hen was not injured.

It was unlawful to sale any wild live bird under Protection of Bird Act
1954

No direct word offer for sale was used in advertisement


APPLICATION

Sec 6(1) of Protection of Bird act 1954
Restrictions on sale of live and dead wild birds, eggs, etc.
(1)If, save as may be authorized by a license granted under section ten
of this Act, any person sells, offers for sale or has in his possession for
sale—
(a)any live wild bird, being a bird included in the Fourth Schedule to this
Act of a species which is resident in or visits the British Isles in a wild
state, other than a close-ringed specimen bred in captivity;

14. Schedule 4 of the Act
"Wild birds which may not be sold alive unless close-ringed and bred in
captivity" and amongst the names in the schedule is "brambling".
[


CONCLUSION
The court decided that advertisement don’t constituted offer. It is
merely an invitation to public whoever want to buy then contact with
advertiser. So defendant appeal was granted.
It was held again the court don’t consider any need to any
interpretation of the phrase “Offer to sale” in criminal law.


In this case it had been discussed that advertisement is invitation to
treat
Advertisement are merely invitation to treat in many cases. It
sometimes appears offer. Advertiser is not bound by his
advertisement in case of invitation to treat.
The examples in regard of this case are given below

EXAMPLE 1

Saboor gave Advertisement with tittle “Plot for Sale “in Daily Jang
newspaper on 12 February 2018. It is located Prince Town Phase 2
Hyderabad. Interested people contact via number and email.


Advertisement aims to invite offers by public who are willing to purchase
Plot. It became source of negotiating terms conditions amount of
invitations.


EXAMPLE 2

15. Shayan advertised in the Daily Kawish newspaper on the 29th January
2018 stating that he is selling Cultus Car 2014 model which is in
excellent condition. At last contact number was given.



EXAMPLE 3

KONCEPT furniture shop gave advertisement in Daily Kawish
newspaper with tittle of Mega Promotional Sale of Furniture. It provides
50% discount over Room set and Dinning set of furniture. High quality of
furniture is available at shop.
For visit. Come shop#13 opposite Farhan Hotel Shah r Faisal Karachi


It is invitation by shopkeeper to whole public to visit and purchase on
your will from stocks offers.







CONCLUSION

‘
Offer – An invitation communicated by one party to another to enter into a legally
binding contract on certain specified terms.
- Invitation to Treat – An invitation to enter into negotiations with a view to
creating an offer

The acceptance of offer established a contract

16. The acceptance of invitation to treat merely establish an offer