Sydney Department Store Pty Ltd (the "Company") has a number of retail stores across NSW with the main business of selling electronic products. Last week, the Company published a promotion catalogue in which it mistakenly priced a TV for $200 instead of $2,000. Page 2 of 2 Sarah received the promotion catalogue in her mail box and was interested in the deal. As such, she drove down to the Sydney CBD store immediately and would like to buy the TV straight the way. However, the store sales staff explained to her that there was an error in the promotion catalogue and refused to sell the TV to her for $200 as shown in the promotion catalogue.

Explain the differences between an invitation to treat and an offer. Advise Sarah whether she can demand the Company to sell the TV to her for $200 as shown in the promotion catalogue and/or take any legal action against the shop under the law of contract. You have to support your explanations and arguments with reference to case law.

Answer rating: 100% (QA)

In contract law there is a distinction between an invitation to treat and an offer An invitation to treat is an invitation for others to make an offer ... View the full answer