Solution :
Issues
* Whether there is a valid revocation from Jim ?
* Whether there is a valid acceptance from Johari ?
* Whether there is a consideration from Johari to Jim in order to buy the electric guitar ?
* Whether is there a contract between the two parties, Jim and Johari?
Law
* Invitation to treat
- A proposal is different from an invitation to treat. The Contract Act does not contain any relevant information or provision respecting this aspect of contract. It is only accepted that English Law is applicable. Invitation to treat is a sort of preliminary communication which passes between the parties at the stage of negotiation. For example, a price list , a display of goods with price tags in a self-service supermarket, an advertisement or an auctioneer inviting bids for a particular article. In the real world, if an auctioneer is considered making a proposal when inviting bids, then when person makes a bid, he is accepting the proposal and an agreement comes into being at that stage. This is a wrong statement. In the actual state of law is the auctioneer is only making an invitation to treat. The auctioneer is merely inviting the people present to make proposal which the former may accept or decline to accept. In other word, the auctioneer is making an offer to make offers. This phenomena is a preliminary communication and not a proposal within the meaning of the Act.
- Case: Pharmaceutical Society of Great Britain v. Boots Cash Chemist Ltd
Summary : The defendants were charged under the Pharmacy and Poison Act 1933 (UK) which provided that is was unlawful to sell certain poisons unless such sale was supervised by a registered pharmacist. The case depended on whether a sale had occurred in the self-service shop when a customer selected articles which he desired to purchase and placed them in a basket. Payment was to be made at the exit where a cashier was stationed and in every case involving drugs, a pharmacist...