Principle: An invitation to offer (or invitation to treat) is merely an invitation to negotiate and does not constitute a legally binding offer.
Facts: A supermarket displays a branded microwave on a shelf with an incorrect price tag of ₹999 instead of ₹9,999. Customer Priya takes it to the cash counter and tenders ₹999. The cashier refuses to sell it at that price. Is there a binding contract?

Answer and explanation

Correct answer: A. No, displaying goods with prices is an invitation to offer; the customer offers at the counter

  1. Step 1: Under the law of contract (Pharmaceutical Society of Great Britain v. Boots Cash Chemists), displaying goods on store shelves with price markers is merely an invitation to treat, signaling willingness to receive offers from customers.
  2. Step 2: The customer makes the actual offer to buy when presenting the goods at the checkout counter, and the merchant retains the discretion to accept or decline that offer. Because the cashier refused the tender of ₹999, no contract was formed.
  3. Step 3: Therefore, the supermarket is not bound to sell at the incorrect price, and no binding contract exists.
Answer
No, the display of goods with price tags in a shop is merely an invitation to offer; the customer makes the offer at the counter.

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