Examination Timing: 00H00M25S
Greenside Ltd sells lawnmowers via an online store. An employee mistakenly advertised the lawnmowers for £50 instead of the actual price of £500 on various trade websites. Within hours, the company received complaints from prospective buyers demanding that the company honour the lower price. The erroneous advertisement was immediately removed, but it was estimated that 5,000 potential customers viewed it.
What position should Greenside Ltd take?
< Previous
Your selected option: A
Next >
The correct position for Greenside Ltd is that the advertisement was an invitation to treat, not an offer. An invitation to treat is an invitation for customers to make an offer to purchase. This principle is supported by the case Partridge v Crittenden [1968] 1 WLR 1204, where advertisements are generally considered invitations to treat rather than offers. In this scenario, the erroneous advertisement invited customers to make offers to purchase the lawnmowers, which Greenside Ltd could then accept or reject. Therefore, Greenside Ltd is entitled to reject the offers made by prospective customers at the advertised price of £50.
Key Point: Advertisements are typically regarded as invitations to treat rather than offers. This distinction allows sellers to manage customer expectations and reject offers that result from erroneous advertisements, as supported by legal precedent.
Collect Question
userContent
