Validity of Contracts

Mr. Larry was delighted to see a 50% discount on his favourite brand of shoes at a shoe store 15 miles away. He took sometime off from work to travel to the store. When he arrived at the store he was told that that the brand advertised was sold out but he could choose from other brands available.  Mr. Larry was very angry and requested that he be refunded his travelling expenses.

Is the owner of the store obligated to refund Mr. Larry his travelling expenses?


The advertisement appearing in the newspaper is not an offer by the store but an invitation to treat. Therefore readers were being invited to make an offer for items advertised.  The owners of the store are therefore in no way obligated to Mr. Larry.

Hope stopped at a convenience store on her way home to purchase a few items.  She handed the cashier he credit card and was surprised when she was told that it declined. She apologized and explained that she did not know why her card declined but she will call the bank in the morning. Susan further explained that she had just enough cash with her to get home and so she could not pay for the goods. The cashier was very angry and asked the manager to intervene. The manager insisted that she pay for the goods.

Is Sandra obligated to pay for the goods?


Sandra has entered into a contract with the convenience store. She made the offer at the cashier counter when she presented the goods to be cashed. The cashier accepted the offer by cashing the goods.  In this situation it is up to the manager of the convenience store to accept Hope’s apology.

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