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MikeLittle.
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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › exception to advertisement
You said something in your lecture about the exception to advertisements regarding “adverts can be offers” where you said that the company is a separate legal entity but I could not understand them completely.
Please explain how adverts can be OFFERS?
Secondly, please confirm that adverts for goods sales are invitations to treat (ie not offers) AND adverts for rewards are offers (ie not ITT). Is this correct?
I’m not sure how ‘the company being a separate legal entity’ could be of particular relevance to this exception.
The Carlill case involved a company (yes, a separate legal entity – the Carbolic Smoke Ball Company) but crucially, it also involved some action by the ‘offeree’ in response to the ‘reward that was being offered’
And that’s a common thread running through cases involving adverts that are treated by the Courts as being offers – the advert involves some action to be taken by the offeree in order that the ‘reward’ can be validly claimed
Yes, adverts for the sale of goods (that don’t also involve an element of reward) are generally treated as invitations to treat. The Courts are reluctant to move away from the general premise that adverts are invitations. So Carlill was truly ground-breaking
OK?