FLK1 · Contract Law
Sample question 1
A customer in a self-service shop takes a bottle of perfume from a shelf. The shelf label states the price as £8, although the shop's normal price for the perfume is £80. At the till, the cashier notices the error and refuses to sell the perfume for less than £80. The customer insists that the shop must sell it to her for £8.
Is the shop obliged to sell the perfume to the customer for £8?
Show answer and explanation
Answer: C – No, because the display was an invitation to treat, and the customer's offer at the till was never accepted.
The rule. Goods displayed with a price label in a self-service shop are not an offer but an invitation to treat. The customer makes the offer at the till, and the shop may accept or reject it.
Why the rule exists. The shop keeps control over whether, and on what terms, it sells – for example if stock runs out or a price has been labelled wrongly. If the display were an offer, the contract would be made the moment a customer took the item from the shelf.
- A. Wrong. The Court of Appeal rejected this view in Boots: taking goods from the shelf is not acceptance, and the customer can still put them back before reaching the till.
- B. Wrong. There is no general statutory duty to sell at the displayed price; a contract still needs an offer and an acceptance.
- C. Right. The display is an invitation to treat; the customer’s offer at the till was refused, so no contract was made.
- D. Wrong. The contract is made when the offer is accepted at the till, not when the customer pays and receives a receipt; payment is performance, not formation.
- E. Wrong. Mistake does not matter here because the shop never made an offer; the point is that the customer’s offer was not accepted.
- Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd [1953] 1 QB 401 (CA)
- Blue v Ashley [2017] EWHC 1928 (Comm) at [52]