I have recently started managing an electrical shop in Galway and have some questions relating to my legal responsibilities to my customers.

(A) I understand that my relationship with my customers is based on contract; can you explain what the requirements for a valid contract to exist are?

A contract can simply be described as a promise or agreement that is recognised by law.

For a contract to be legally enforceable, the following five basic elements are required:

1. There must be an intention by the parties to create legal relations.

2. There must be a valid offer. In your case this would involve agreeing to sell goods to prospective customers.

3. There must be a valid acceptance on behalf of the customers, that is, agreeing to the terms of your offer and ultimately buying the goods.

4. There must be consideration, which in this instance would be the money paid for the goods.

5. The person(s) buying the goods must have capacity which means they must be legally entitled to do so. However, under certain circumstances persons under 18 years of age may not be entitled to enter into a contract.

(B) Last week a new assistant in the shop incorrectly advertised in the window one of our new televisions at 'only €1.99' instead of the correct price of '€199'. A customer entered the shop to buy what he described as the bargain of the year and he created a big fuss when I explained it was a mistake. Are there any legal consequences?

The sign advertising in the window can be interpreted as what is known as an 'invitation to treat' which is not a valid offer in itself. However, there could be consequences if he was to make a complaint. The Court in determining whether the practice was misleading advertising is likely to consider the facts of the particular situation, that is, whether there was a genuine mistake, the length of time the price was advertised, etc..

(C) Can I exclude liability for any broken or defective products so that I am not held legally responsible?