Case: Terms of contract - mere representation
Daniel sees an advertisement in a newspaper for a washing machine at a shop for K300.00. He goes to the shop and at the checkout counters says, he accepts their offer for the washing machine to be sold to him for K300.00. However, the shop owner declines to sell the washing machine at this price, saying that unfortunately there was an error in the advertisement. The correct price is K3,000. Is Daniel entitled to demand the shop to sell the washing machine for K300.00?

Question

22-09-2022
Law

Answered

Case: Terms of contract - mere representation
Daniel sees an advertisement in a newspaper for a washing machine at a shop for K300.00. He goes to the shop and at the checkout counters says, he accepts their offer for the washing machine to be sold to him for K300.00. However, the shop owner declines to sell the washing machine at this price, saying that unfortunately there was an error in the advertisement. The correct price is K3,000. Is Daniel entitled to demand the shop to sell the washing machine for K300.00?

Answer :

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anthougo anthougo · Answer 1 · 2022-09-23T12:54:09-04:00

Daniel has no title to demand the shop sell the washing machine for K300.00 because the advertisement made an untrue statement which is a mere representation.

What is a mere representation?

A mere representation in an advertisement is not a contract term.

A mere representation is a pre-contract term, and the shop can further clarify that the misstatement was an innocent mistake, which it had done.

A pre-contract representation does not form a contractual term unless it is a financial contract, where the obligor makes certain assertions about itself.

Daniel knows that washing machines do not normally sell for K300.00 unless they are recycled or old. The advertisement is untrue. It is then either a misrepresentation or a mere representation.

In this case, Daniel was not induced to enter into a contract with the shop but was merely motivated to buy the washing machine based on the unrealistic advertised price. There was no fraudulent misrepresentation.

Thus, Daniel has no title to demand the shop sell the washing machine for K300.00.

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