Thursday, 7 August 2008

What is an INVITATION TO TREAT in contracts?

An invitation to treat is distinct from an offer in that it is an indication of one parties willingness to negotiate a contract but not the acceptance thereof.

Two examples of an invitation to treat are:

  1. A tender requesting proposals to be lodged.
  2. Goods being offered for sale in a store window.

In point 2, the store is not obliged to sell the goods to anyone who is willing to pay for them, and may refuse custom.

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