Problem
CD Ltd is a direct household insurer. CD Ltd ran an online promotion stating that new customers taking out insurance policies before the 31 March will save 10% on their annual premium.
Adisa, a prospective policyholder, wished to take out a household insurance policy with CD Ltd. Prior to the 31 March, Adisa went online to purchase an insurance policy but the 10% discount originally promised was no longer available.
Adisa subsequently challenged CD Ltd as to why the 10% discount was no longer available. CD Ltd stated that the promised premium reduction had been removed from the online promotion before the 31 March and therefore it would not apply to Adisa's insurance premium.
i. Explain, with justification, the legal nature of the online promotion. Refer to one relevant case in support of your explanation.
ii. Explain, with justification, whether CD Ltd was legally entitled to remove the discount in the promotion before the 31 March.