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Sally

The document discusses when advertisements constitute an invitation to treat versus a binding unilateral offer under contract law. It analyzes a scenario where a company advertised a guarantee to return the price of a cream and pay an additional sum if customers did not lose weight after using it as instructed, finding this to be a binding unilateral offer accepted by a customer who met the terms.

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CHZE CHZI CHUAH
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25 views

Sally

The document discusses when advertisements constitute an invitation to treat versus a binding unilateral offer under contract law. It analyzes a scenario where a company advertised a guarantee to return the price of a cream and pay an additional sum if customers did not lose weight after using it as instructed, finding this to be a binding unilateral offer accepted by a customer who met the terms.

Uploaded by

CHZE CHZI CHUAH
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Sally cases

Not every advertisement is automatically invitation to treat (ITT). The courts have held

advertisements making promise to reward or promise to pay were offers made to the public at

large (unilateral). If the advertisements by its words showed it to be an offer, the court is

prepared to construe the advertisement is an offer not an ITT. The contents (words) in the

advertisement must clearly show that it is intended to be an offer and not an ITT. Anyone

who meets all the terms of the proposal may accept. The legally enforceable promise

(agreement) exist when the action promised has been performed.

Refer to the scenario, the company guarantees to return the price of the cream and pay the

customer an additional USD1000 if customers do not lose 5kgs in 30 days after using the

cream according to instructions. Therefore, the advertisement made by the company should

be considered as a binding unilateral offer that is accepted by anyone who completes its

terms. As refer to Sally’s actions, she has completed all the terms stated in the advertisement.

Thus, there is a legal obligation for the company to return the sum Sally paid for the cream

and an additional USD10000.

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