Group Assignment - Law of Contract

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 three bottles of face cream which were on offer. She took the bottles to the counter where she paid for them. As they were leaving the supermarket, the cashier came up to them and told them that they have to return the goods. Advise Wei according to Contracts Act 1950 and relavant decided case(s).

The issue in this situation is whether there is a legally binding agreement between Wei and the cashier and whether Wei has to return the goods to the cashier. In order for a contract to be legal and valid, it must have offer [Section 2(a) of Contract Act] and acceptance [Section 2(b) of Contract Act] which the acceptance must be absolute and unqualified [Section 7(a) of Contract Act].

According to the case of Pharmaceutical Society of Great Britain v. Boots Cash Chemist, displaying of goods is merely an invitation to treat and not an offer. However, when Wei took the bottles and took them to the counter, she is making an offer to buy those goods and there is acceptance if the cashier accept the payment for the goods. In this situation, the cashier did accept the money paid for the goods. In other words, Wei made the offer to buy the goods and the cashier accepted it. Thus, with the existence of offer and acceptance (the acceptance is absolute and unqualified), this is a legal contract. Another case that can be refered to is the case of Fisher v. Bell.

Since there is a legally binding agreement between Wei and the cashier, Wei does not need to return the goods to the cashier.