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Advertisement-offer or invitation to treat

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Advertisement-offer or invitation to treat

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by MikeLittle.
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  • July 27, 2023 at 3:36 pm #689020
    whydoyoucare
    Participant
    • Topics: 50
    • Replies: 46
    • ☆☆

    Q:1)
    Advo puts the following advertisement in a newspaper.
    “For sale. Laptop and laser printer. Good condition. £100. Phone Advo or text on …
    What is its legal effect?
    A The statement is an offer for sale
    B The statement has no legal effect
    C The statement is an invitation to treat

    Q:2)
    Axa Ltd placed the following advertisement on the internet:
    “We are able to offer for sale a number of portable colour television sets at a specially reduced price of €5.90. Order now while stocks last.”
    The advertisement contained a mistake in that the television sets should have been priced at
    £59.00. Bee Ltd immediately placed an order for 100 television sets.
    Which of the following statements is correct?
    A Bee Ltd has accepted an offer and is contractually entitled to the 100 television sets
    B Axa Ltd can refuse to supply Bee Ltd as the advertisement is not an offer, but an invitation to treat
    C Axa Ltd can only refuse to sell the television sets to Bee Ltd if it has sold all its stock D As Bee Ltd has not yet paid for the television sets, it has no contractual right to them

    Now my question is generally adverts are invitation to treat and not legally enforceable. However there are certain times where the advertisement is specific and not vague and can be treated as offer, I thought in these two questions the ADV was clear specific so it was offer. Why is it an invitation in both although it’s clearly asking for order/ telling to contact the person.

    July 27, 2023 at 8:17 pm #689037
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23300
    • ☆☆☆☆☆

    Surely, that’s what an invitation to treat is – it’s asking specific or general people to contact and make an offer.

    You seem to think that an invite to place an order or to make contact should be treated as an offer to be accepted.

    That cannot be correct

    Sorry

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