Question

Exposure of goods by a shopkeeper is _________:

• A. Offer for Sale;
• B. Invitation to Offer;
• C. Offer;
• D. Acceptance;

Hint:

Display of goods with a price tag is an invitation to offer, not a legal offer — the customer makes the actual offer at checkout.

Answer 1

The Correct Option is B

Step 1: Understanding Invitation to Offer:
Under the Indian Contract Act, an “offer” is a proposal made by one party to another to do or abstain from doing something with the intention of creating legal relations. However, an “invitation to offer” is merely an invitation for others to make offers. It shows a person’s willingness to negotiate but not to be immediately bound.
Step 2: Application to Exposure of Goods:
When a shopkeeper displays goods with price tags in a shop window or shelf, it is not an offer but an invitation to the public to make an offer to buy. The shopkeeper may still accept or reject the offer. This was established in *Pharmaceutical Society of Great Britain v. Boots Cash Chemists Ltd.* (1953), where the display of goods was held to be an invitation to offer, not an offer itself.
Step 3: Final Conclusion:
Thus, the correct answer is (B) Invitation to Offer, since the exposure of goods indicates readiness to receive offers, not a binding intention to sell.