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A shop advertises shirts for sale at stated prices, and a customer comes to the counter to buy one. How does the law ordinarily treat the advertisement and the customer's request?

Question and options

A shop advertises shirts for sale at stated prices, and a customer comes to the counter to buy one. How does the law ordinarily treat the advertisement and the customer's request?

  1. The advertisement is a proposal, and the request is an acceptance

  2. The advertisement is an invitation to offer, and the request is an offer

  3. The advertisement is a general offer, accepted by coming to the shop

  4. The advertisement is an invitation to offer, and the request is an acceptance

Answer and explanation

Correct answer: B - The advertisement is an invitation to offer, and the request is an offer

An advertisement of goods at stated prices ordinarily invites people to make offers; it is not a proposal under Section 2(a) of the Indian Contract Act, 1872, because the shop does not signify willingness to be bound by every response. The customer's request is the offer, and the contract is made only when the shop accepts it. A general offer accepted by performance, as in Carlill v. Carbolic Smoke Ball Co., is an offer of a reward, not a display of goods.

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