Pharmaceutical Society of Great Britain v. Boots Cash Chemists (Southern) Ltd.

Facts

Boots ran a self-service chemist where customers picked drugs and medicines off open shelves and paid at a cashier, with a pharmacist supervising at the till. The Pharmaceutical Society contended that the sale of listed poisons occurred at the shelf, away from pharmacist supervision, in breach of the Pharmacy and Poisons Act. The issue turned on where and when the contract of sale was concluded.

Issues

• Does the display of priced goods on a self-service shelf constitute an offer to sell?
• At what point is the contract of sale formed in a self-service store?

Arguments

The Society argued that the shelf display was an offer accepted when the customer placed an item in the basket, completing the sale away from the pharmacist. Boots argued the display was only an invitation to offer, the customer made the offer at the cash desk, and the pharmacist supervised acceptance there.

Held

The court held that the display of goods on shelves was merely an invitation to treat, not an offer. The customer made the offer to purchase when presenting goods at the cashier, and the shop accepted (or could decline) at that point. Because acceptance occurred at the till under the pharmacist's supervision, there was no breach; a customer is free to replace an item before reaching the counter, confirming no contract is formed at the shelf.

Ratio decidendi

A display of goods with prices, whether in a shop window or on self-service shelves, is an invitation to offer; the buyer's tender of goods at the point of payment is the offer, which the seller is free to accept or reject.

Significance

The leading authority distinguishing offer from invitation to offer in retail, foundational to modern self-service and online commerce; consistently followed and discussed in Indian texts and decisions on formation of agreement.

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