ASSIGNEMENT – 1

Course: BUS 518

Submitted to Submitted by
Professor Dr. Mohammad Nazmuzzaman Arifur Rahman Chowdhury
Bhuian ID: 203 5397 660
North South University Section: 3

Date of Submission: December 9, 2020

CASE
X, gave an advertisement in a newspaper that a sale of rare and valuable old-fashioned furniture
by auction will be held at 12:00 P.M. on 9th May, 2020, at Sher-E-Bangla Uddan, Stall no. 640,
Dhaka. Y from Chittagong reached Dhaka on the appointed date and time but found that X had
cancelled the auction sale. Advise Y in this circumstance.

ISSUE
Here, the main issue is whether the advertisement in the newspaper placed by X was a legally
binding offer of those furniture’s or not. Because Y has been accepted the auction offer and
reached to Dhaka to make the contract complete.

RULE
According to law case of Harris v Nickerson (1873) LR 8 QB 286, advertisement for auction
doesn’t establish any offer to any person and the advertiser can withdraw and cancel the auction
at any time. According to law, The Contract Act, 1872, “an agreement not enforceable by law is
said to be void.”
Offer and Invitation to offer is two different things. Offer means proposal, where invitation to
offer means inviting others to make a proposal. Invitation to offer main condition is to persuade
or negotiate the terms. Here, the offeror doesn’t make an offer, rather he/she invites other peoples
to make an offer. So, in terms of invitation to offer, it doesn’t follow the law as it is not
enforceable by law.

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ANALYSIS
The case illustrates here basically offer and acceptance. According to Y, X gave an
advertisement of this auction and thus he made an offer. Y from Chittagong reached Dhaka as
Y accepted the offer. But X had cancelled the auction sale. Here, according to Y, by giving an
advertisement, X made a declaration of the offer. But, as it is not an offer rather it is an invitation
to offer, X is not legally bind to this situation and Y can’t sue any case against X. For X, his/her
main objective was to receive offers from peoples and then by negotiating terms the real contract
will be made. It is not essential though to make an agreement. When X put that invitation to offer
by giving auction sale, and if someone respond it to make deals then it will become an offer. X
didn’t have any intention to contract with other in particular who attends in the auction. Here,
acceptance can be given if X made a real offer like he/she is selling something and deals with
Y, and Y accept the offer and pay him/her. But in the case, X made invitation to offer to make
an offer so there won’t be any acceptance. According to law, invitation to offer is not enforceable
by law.

CONCLUSION
In this case, the advertisement Mr./Mrs. X provide, is not an offer but it is to attract people to
ask for an offer. Therefore, it is considered as invitation to offer. And invitation to offer is not
an offer but it is generally a part of negotiation process, which may lead to an offer. For y, it is
better to remain it simple because if Y takes this situation to court, obviously without any doubt
the court will dismiss the case by clarifying that X gave that advertisement simply to inform the
peoples like potential purchasers that the sale was taking place. Neither it is an offer so that it
can lead to contract with anyone who might act upon it by attending the auction nor it was a
warranty of those furniture. So, X is not legally bind to auction the old furniture’s on any
particular day. So, the best option for Y not to sue any case against X as the offer by X was
merely an invitation to offer.