1. Law of Torts
BUS107 Commercial Law
Week 6 Lecture

2. IRAC
Issues
Rule
Application of rule
Conclusion

3. What is Required Correct identification of issues Well structured
Demonstrate a good understanding of the legal principles raised in the question
Good application of the facts in the question to the law
Sound presentation of arguments citing relevant authority

4. Example
Mary desperately wants a Samsung Galaxy S8. She goes into different mobile phone shops every lunch hour looking for one on special. Because it is a new model, nobody is discounting it. All the shops sell it for $1, She cannot afford that price. One day she goes into “Stupid Steve’s Discount Phones”. She sees a Galaxy S8 on the display board with a price tag of $ She immediately says to a salesman “I’ll buy that phone for the sticker price of $ – here’s my debit card.” The salesman says “Sorry, that’s a mistake – they’ve put the decimal point in the wrong place. I can’t sell it to you for that price.” Can Mary make the store sell her the phone for $122.90?

5. Solution Issue 1 Rule Application Conclusion Offer
An offer must be a firm promise, it is different from an invitation to treat
Application
Pharmaceutical Society v Boots
The display of an item on a shelf in a store is not an offer
Conclusion
The store has not made an offer that is capable of acceptance and so there is no contract