Learning Outcomes:

• Demonstrate knowledge of the basic elements of a contract
• Demonstrate knowledge of which of those elements are pertinent to potential disputes within this scenario
• Apply the principles established in cases studied to the facts of this scenario
• Support those principles with legal authorities. Cases must be given full citations.
• Reach a reasoned conclusion based on the above
• Demonstrate acceptable standards of communication skills in terms of written English (grammar, punctuation, paragraphing etc.)

The Question

Kim and Terri had decided to go shopping in Bluewater. Kim had been looking everywhere for a new dress for her sister's wedding and was prepared to pay up to £150. She passed a smart little boutique, which had just opened and stopped in her tracks. There in the window was the dress of her dreams, which, being a great follower of fashion, she knew was made by Sharmani and should retail for at least £500. It was clearly labelled at £50.

The dress was the only one in the store, Kim asked to try it on, it fitted perfectly and she went to the counter with her £50 ready in her hand.Lynne, the owner of the boutique said that she was sorry, but there had been a mistake and stated that the dress cost £450 and refused to sell it for the price on the label.

Kim, who is a part time law student at the University of North Dulwich said, ‘I know my rights! I have studied contract law and you have to sell this dress to me at the price in the window.'

Terri, meanwhile,is an avid reader of ‘Charm' magazine and had seen an advertisement the day before, which read;

‘Special Offer to readers of ‘Charm' magazine! The first six customers to present this advertisement at the enquiry desk on the ground floor of the Jack Jones department store are entitled to a free outfit of their choice, worth £100.'

Terri had got up early and was third in line at the enquiry desk, when the shop opened. She is furious because the store is refusing to honour ‘the offer', saying that it was just a publicity stunt and no-one was expected to take it seriously.

Please advise Lynne whether she is legally obliged to sell the dress to Kim at the stated price of £50 and Terri whether she is legally entitled to the £100 outfit. (You are only expected to use legal principles which you have covered in class. You are not expected to discuss the law on mistake.)