Invitation to Offer

An invitation to offer or invitation to treat is a preliminary communication that indicates a willingness to negotiate or engage in discussions but does not amount to a binding offer. It is an indication that one party is prepared to receive offers from others, which it can then accept or reject. The key distinction is that an invitation to offer is not an offer itself; it is merely an invitation for others to make offers.

Here are some characteristics and examples:

Characteristics:

1. Non-binding Nature: It is not a promise to contract but an indication of readiness to negotiate.

2. Precedes Offers: It precedes an actual offer, inviting the other party to make an offer.

3. No Acceptance Needed: Since it is not an offer, there is no need for acceptance.

Examples:

1. Advertisements: Advertisements in newspapers, catalogues, and online platforms are generally considered invitations to offer. They invite customers to make an offer to purchase the advertised goods or services.

2. Display of Goods: Items displayed in a store with price tags are usually treated as invitations to offer. The customer makes an offer to buy at the stated price, which the store can then accept or reject.

3. Auction Announcements: The announcement of an auction is an invitation to offer. The bids made by participants are the offers, which the auctioneer can accept.

Legal Perspective:

In contract law, distinguishing between an invitation to offer and an actual offer is crucial. An offer, once accepted, becomes a binding agreement, whereas an invitation to offer does not create any legal obligation until an offer is made by one party and accepted by the other.

Understanding this concept helps in identifying when a contract is actually formed and the point at which legal obligations arise.

Books Recommended:      Check it Out

1. Beatsen (ed.)-Anson’s Law of Contract : (27th Ed. 1998)

2. Anson-Law of Contract (1998), Universal, Delhi

3. Pollock and Mulla-Indian Contract Act

4. Avtar Singh-Law of Contract, Eastern Book Co.(Lucknow)

5. S.K.Kapoor- Samvidha Vidhi (Hindi)