Tuesday, March 2, 2010

Contract law and application

Chong and Wei went shopping and decided to shop at Super Supermarket. Wei looked at the goods which were on display and decided to purchase 3 bottles of face cream which were on offer. She took the bottles to the counter where she paid for them. As they were leaving that supermarket, the cashier came up to them and told them that they have to return the goods.


What are the issues? Discuss the law and cases used as reference in this case. Advise Wei according to Contract Act 1950 and relevant decided case(s).



 The issue on this case is whether Wei should return the goods to the cashier or not.

Let do some analysis on the case. Firstly, Super Supermarket displayed the face cream in it shop and displaying of goods is actually an invitation to treat. Some cases could be use as reference to support this statement, such as Fisher vs Bell case where the defendant displayed flick knives in his shop windows. He was then convicted of a criminal offence of offering such knives for sale. The conclusion of the case is display of any goods with a price tag on it in a shop window was not an offer but rather it was an invitation to treat.


Next, Wei showed his interest by taking the bottles to the counter and Wei offered to buy the goods [Section 2(a) of the Contracts Act]. Then, sale has take place where Wei paid for the items. Thus, the proposal of Wei to buy the goods is said to be accepted since the cashier had took the money from Wei    [Section 2 (b) of the Contract Act].


Followed the law and cases referred to, the contract is said to be legally binding and Wei can resist and not to return the goods to cashier.

Reference: General Principles of Malaysian Law by Lee Mei Pheng

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