With reference to provisions of the Indian Contract Act, 1872, analyse the given situations and answer each of the following questions: (i) Mr. X…

CA Foundation · Business Laws · PYQS · September 2025
With reference to provisions of the Indian Contract Act, 1872, analyse the given situations and answer each of the following questions: (i) Mr. X visited a Cosmo Mega Mall at Nagpur, which has a variety of items for day-to-day use. The mall has a self-service system. Mr. X took a basket, picked up ten different items of his choice, and reached the cashier for payments. The cashier accepted the price of nine items but did not accept the price of remaining one item which was at the highest price of 10,050/- among the ten items. Decide as per the provisions of the Indian Contract Act, 1872 whether the Cosmo Mega Mall be compelled to sell the said article to Mr. X.

Suggested Answer and Working Notes:

Invitation to Offer: The offer should be distinguished from an invitation to offer. In terms of Section 2(a) of the Indian Contract Act,1872, an offer is the final expression of willingness by the offeror to be bound by his offer should the party chooses to accept it. Where a party, without expressing his final willingness, proposes certain terms on which he is willing to negotiate, he does not make an offer, but invites only the other party to make an offer on those terms. This is the basic distinction between offer and invitation to offer. The display of items with a price in it in a self-service system is merely an invitation to offer. It is in no sense an offer for sale, the acceptance of which constitutes a contract. In this case, Mr. X by selecting some items and approaching the cashier for payment simply made an offer to buy the items selected by him. If the cashier does not accept the price, Mr. X cannot compel him to sell. Accordingly, in view of the above, Mr. X cannot compel the Cashier / Cosmo Mega Mall to sell the10 th article.

Topics: The Indian Contract Act, 1872

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