Question

Question 1: (15 Marks)

Jim owns and operates a garden shop and landscaping business. In January 2023, he manages to procure a large number of old railway
sleepers. These sleepers are highly coveted by many gardeners for use as decorative retaining walls, borders, and garden steps. As part of a
marketing plan intending to increase customer loyalty, Jim sends a pamphlet to his regular customers telling them a special price for the
sleepers.
Special Offer!
Top quality railway sleepers for sale. Ideal for retaining walls, borders, and garden
steps. Special price of $100 for 5, while stocks last.
The weather, however, stays very mild for the time of year and Jim's landscaping business sales soar. By March sales are still high. Sam
negotiates with his supplier for another load of sleepers. Due to high demand, these sleepers are more expensive.
Jim must sell them for $100 for 3 to make the same profit. Jim does not send out a pamphlet this time; instead, he places a sign on the
sleepers in his yard that tells of the new price.
Prabal and Sonia, a newlywed couple have been saving up for landscaping their garden. They intend to enter a contest for the TV show "Home
and Garden". They relied for their budget on Jim's pamphlet. When they arrive at Jim's yard and find a sign for the new price of the sleepers
they are upset. The price would not allow them to finish their project in time for the contest. Prabal and Sonia show their pamphlet to Jim and
demand the sleepers at a lower price, that is, $100 for 15.
Required: Relying on your knowledge of the law of contract, advise Jim as to whether he is bound by the lower price. Refer to
relevant case laws, if any, in support of your answer. You do not need to consider Australian Consumer Law to form your advice.

Answer 1

Based on the information provided, it appears that Jim’s pamphlet may be considered an invitation to treat rather than a legally binding offer. An invitation to treat is an expression of willingness to negotiate and invites others to make an offer. In this case, Jim’s pamphlet could be seen as an invitation for customers to come to his shop and make an offer to purchase the railway sleepers at the special price.

In the case of Partridge v Crittenden [1968], it was held that advertisements are generally considered invitations to treat rather than offers. Similarly, in the case of Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd [1953], it was held that displaying goods with a price tag in a self-service store is also considered an invitation to treat.

Therefore, Jim may not be legally bound to sell the railway sleepers at the lower price stated in the pamphlet. However, this is just general information and should not be taken as legal advice. It is recommended that Jim consults a lawyer for specific legal advice on this matter.

Step-by-step explanation: