Philp v Knoblauch [1907] ScotCS CSIH_9
Citation: Philp v Knoblauch [1907] ScotCS CSIH_9
Rule of thumb: If an advertisement has all the essential terms in a contract, must an organisation follow the terms? Yes, where an advertisement has all the terms clearly, this is an offer which can be accepted by a consumer & the organisation must honour it.
Judgment:
The basic facts of this case were that there was an advertisement for a product which contained exact reference to the terms and conditions – including plate terms - for the product, seed, which was being sold. The Court held that this did constitute an offer and stated the general test that where an offer is vague it is an invitation to treat but where fairly exact terms and conditions are provided then it constitutes an offer, ‘I think that the letter of 28th December 1905 contains in the first place a general statement that the defender is selling Plate linseed, and then goes on to make an absolutely definite offer of a specific quantity at a specific price. The defender says, “I shall be glad to hear if you are buyers.” This does not mean buyers in general but buyers of the quantity specified at the price quoted, otherwise there would be no meaning in the phrase which follows And await your esteemed reply.” This offer was accepted by a telegram dated 29th December 1905 sent before the offer was recalled, and the letter and telegram constitute, in my opinion, a concluded contract for the purchase of the linseed in question. It was maintained by the defender that there was no concluded contract because the telegram did not fully meet the offer in respect that it did not refer to “usual Plate terms,” but with regard to a document so plainly in re mercatoria as a telegram I think the acceptance therein contained, which included a specification of the subject sold, the time of delivery, the quantity and the price, was sufficient, and that it implied an acceptance of the ancillary condition “usual Plate terms.” But further, the pursuers' letter of 29th December 1905 contained that condition, and, moreover, these “terms” being the invariable conditions for Plate linseed, they must be held to have formed an implied condition of the acceptance unless specially excluded. For these reasons I think it is vain for the defender to plead that there was no concluded contract in respect of the absence in the telegram of a reference to “usual Plate terms.”, Lord Ardwall at 669
Warning: This is not professional legal advice. This is not professional legal education advice. Please obtain professional guidance before embarking on any legal course of action. This is just an interpretation of a Judgment by persons of legal insight & varying levels of legal specialism, experience & expertise. Please read the Judgment yourself and form your own interpretation of it with professional assistance.