invitation to offer

An invitation to offer (in English law, an invitation to treat) shows willingness to negotiate, not an intention to be bound on acceptance. Display of goods with prices in a shop is an invitation: the customer makes the offer at the counter (Pharmaceutical Society v. Boots Cash Chemists, Court of Appeal, 1953). So are catalogues, most advertisements, calls for tenders, prospectuses and auction announcements. Under s.64 of the Sale of Goods Act, 1930 each bid at an auction is an offer, and the sale is complete on the fall of the hammer.

In Harvey v. Facey (Privy Council, 1893) a reply stating the lowest price acceptable for a property was held to be information, not an offer. An advertisement can be an offer, though, where it shows a clear intention to be bound, as in Carlill v. Carbolic Smoke Ball Co. (1893).

Example

A price tag on a shirt is an invitation to offer, so the shopkeeper is not bound to sell it at the marked price.

In Indian law

• Section 64, Sale of Goods Act, 1930 (auction sales)
• Harvey v. Facey (Privy Council, 1893)

See also

offer · acceptance · agreement · contract

Read more in the study notes

• Offer, invitation to offer and tenders (Contract I)
• Enquiries, quotations, orders, complaints and responses (Business Communications)
• Selection: meaning, procedure and employment tests (Human Resource Management)
• The literal rule and the golden rule (Interpretation of Statutes and Principles of Legislation)
• The Socratic method and the problem method of teaching law (Legal Education and Research Methodology)