Discount coupons in e-commerce website are offer or invitation to offer as per contract act

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Dear Atharv Sankilya 

Thank you for your query! I am Devaki, and I will try to answer your query.

In brief, Discount coupons on e-commerce websites are invitations to offer; however, they are subject to the coupon wording and terms & conditions of the discounted coupons. 

• The offer is defined in Section 2(a) of the Indian Contracts Act of 1872, which defines an offer as "When one person signifies to another his willingness to do or to abstain from doing anything, to obtain the assent of that other to such act or abstinence, he is said to make a proposal". The purpose of the offer is to complete the contract by getting the assent from the other party and forming a promise to sell the product. 
• Whereas the invitation to offer is not defined in the Indian Contracts Act of 1872, it is understood as where the party is willing to negotiate on the terms. Here, in this query, the discount coupons in e-commerce have a time limit and come with a list of rules and restrictions, such as a minimum purchase requirement and a list of approved products. The invitation to offer includes these terms.
• A valid discount coupon becomes an offer from the customer to purchase the goods at a discounted price at a moment in time. The terms of the coupon will then determine whether the merchant accepts or rejects the offer.

In the case of Carlill v. Carbolic Smoke Ball Company (1893), the court decided that an advertisement that offered a prize for utilising a product constituted a unilateral offer that could only be accepted by carrying out the required action. 

However, in Pharmaceutical Society of Great Britain v. Boots Cash Chemists (1953), the court decided that putting products in a store window with prices written on them was only an invitation to treat or bargain, not an offer. 

The coupon's exact wording and the terms and conditions posted on the website will determine how it is interpreted: 

• Coupon Wording: An offer is more likely if the coupon is clearly worded, such as "10% off any item" or "Guaranteed 20% off on any purchase."
• Terms and Conditions: An invitation to offer may be found in the website's conditions, indicating that using a coupon is contingent upon seller acceptance.

Therefore, It is essential to go through the coupon wording and terms and conditions of the discounted coupon in e-commerce to determine whether it is an offer or an invitation to offer. 

I hope this answer helps. Thank you for your time and patience!    

Regards

Devaki 

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