An offer is a definite expression of willingness to enter into a contract on specified terms, made with the intention that it will become legally binding if accepted. An invitation to treat, on the other hand, is an indication of willingness to negotiate a contract, rather than a definite offer of a contract.
In contract law, the distinction between an offer and an invitation to treat is important, as it determines whether or not a contract has been formed. When an offer is accepted, it becomes a binding contract. However, an invitation to treat cannot be accepted, and is not legally binding.
One common example of an invitation to treat is when a person displays goods for sale in a shop window. This is not an offer to sell the goods, but rather an invitation for a customer to make an offer to buy them. Similarly, advertisements and catalogues are generally considered to be invitations to treat, rather than offers.
Another example of an invitation to treat is when a person makes an auction bid. The person making the bid is not making an offer to buy the item at the bid price, but rather inviting the auctioneer to accept their bid. The auctioneer has the right to accept or reject the bid, and the bid does not become a binding contract until it is accepted.
In contrast, an offer is a definite expression of willingness to enter into a contract on specified terms, made with the intention that it will become legally binding if accepted. An offer can be made orally, in writing, or by conduct, and must be clear and definite in its terms.
For example, if a person offers to sell their car to another person for a specific price, this is considered to be an offer. The person making the offer has made a definite statement of their willingness to sell the car on the specified terms, and the other person has the option to accept or reject the offer. If the offer is accepted, a binding contract is formed.
In summary, the distinction between an offer and an invitation to treat is important in contract law, as it determines whether or not a contract has been formed. An offer is a definite expression of willingness to enter into a contract on specified terms, while an invitation to treat is an indication of willingness to negotiate a contract.