enny read a brochure left in her letterbox about a sale of clothes at her local shop. She was interested in buying some casual wear/sportswear so she went to the shop. She chose one pair of leggings and two tops. She took them to Shirley who was at the cash register. Shirley rang up the clothes and Penny paid by tapping her credit card on the machine. At no stage did Penny check the receipt or observe how much she was paying for the clothes. When she was at home she looked at her purchases. The pair of leggings had been marked down on the attached ticket from $35.00 to $25.00, but was rung through the register at $35.00. Penny returned to the shop and complained, but Shirley said that once you leave the shop there was nothing she could do.

Using contract law only, discuss whether there was a binding contract formed between Shirley and Penny, and at what price for the pair of leggings. Refer to all elements of a valid simple contract, being offer and acceptance, intention, and consideration. (10 marks)