Reply to post: Re: Hang on

HORRIFIED Amazon retailers fear GOING BUST after 1p pricing cockup

Tom Wood

Re: Hang on

Technically the price on the shelf in Tesco is an "invitation to treat". By placing the items on the checkout belt you are making an offer to Tesco to purchase the items at the advertised price. Only once they process your transaction through the till are they accepting your offer and at that point a contract is formed.

Online, the website is the invitation to treat, your order is the offer and generally speaking the dispatch confirmation is the acceptance (point at which the contract is formed).

The problem here comes from taking humans out of the loop. In Tesco, if everything scanned through the till at 1p, the checkout assistant would probably figure out something was wrong and you wouldn't get as far as forming a contract. But if there is an automated system (self checkout maybe, or Amazon's automated dispatch system) performing the acceptance step and forming the contract, there is a risk that that system could go awry and lead to the company forming contracts that they would rather not have done.

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