Using relevant case law explain why the distinction between an invitation to treat and an offer is important in Contract law.

Authors Avatar

Using relevant case law explain why the distinction between an invitation to treat and an offer is important in Contract law.

An ‘invitation to treat’ is inviting parties to create a contract. It represents the preliminary stage of negotiation. A person making an invitation to treat does not intend to be bound as soon as it is accepted by the person to whom the statement is addressed. An invitation to treat is always a fixed price and a choice; it is not an offer to sell. Newspapers and catalogues are examples of invitations to treat.  

An ‘offer’ is defined as a statement of willingness where the person who is making the offer (offeror), promises to be bound in a contract if the terms of the offer are accepted by the person accepting the offer (offeree). An individual or organisation can make an offer to another individual (bilateral) another company or to anyone in the world (unilateral).          An offer can be “express”- for example if A tells B he will sell his radio for £30. An offer can also be “implied” from conduct - for example when A brings goods to the supermarket cash desk.

Join now!

It is tough to differentiate between an invitation to treat and an offer as it depends on the intention of the party making an invitation to treat which is shown in Pharmaceutical Society of GB v Boots Cash Chemists Ltd [1932] 1 QB 401, where the defendants changed the format of their shop from a counter service to self-service. The Queen’s Bench and the Court of Appeal rejected this argument. The offer originated from the customer as soon as the item was put in the basket. The defendants remained free to accept or reject the offer. If they did accept, then ...

This is a preview of the whole essay

Here's what a teacher thought of this essay

Avatar

3 Stars, due to the foregoing.