CA Foundation · Business Laws · The Indian Contract Act, 1872
Meera, a resident of Pune, sees a newspaper advertisement by Kapoor Traders stating that the first 50 customers to visit the shop on Monday will get a laptop at 40% discount. Which of the following best describes the legal nature of this advertisement?
The advertisement is a general offer made to the public at large. Because its terms are definite and limited, anyone who fulfils the stated condition, by visiting on Monday among the first 50 customers, accepts it. Not every advertisement is only an invitation to treat.
- AAn invitation to offer, since all advertisements are only invitations to treat
- BA general offer made to the public at large, capable of acceptance by anyone who fulfils the conditionCorrect
- CA counter-offer by the trader
- DA contract already concluded with every reader
Explanation
An advertisement that is specific, clear and limited in its terms, such as the first 50 customers getting a discount, can be a valid offer to the world at large. It is accepted by performing the stated condition. Option A is wrong because not every advertisement is merely an invitation to treat. Option D is wrong because no contract arises until someone accepts.
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