Define: Invitation To Treat

An invitation to treat is a preliminary communication or action inviting others to make offers or enter into negotiations, rather than constituting a binding offer itself. In contract law, an invitation to treat is not a formal offer but rather an invitation for others to initiate negotiations or transactions. Examples of invitations to treat include advertisements, price lists, displays of goods, or auction announcements. These communications are typically considered invitations for potential buyers to make offers to purchase goods or services, rather than binding commitments to sell. Unlike an offer, which creates a legally binding agreement upon acceptance, an invitation to treat does not create contractual obligations until a valid offer is made and accepted. Understanding the distinction between an invitation to treat and an offer is crucial in contract law, as it helps determine when a legally enforceable agreement is formed between parties.

An invitation to open negations with a view to forming a Contract. In English law, an invitation to treat is not an ‘offer’ in the contractual sense, and agreement to its terms, even if unqualified, does not constitute the formation of a contract. There are many instances where invitations to treat are misconstrued as offers. For example, if a shop displays goods for sale with a price label attached, they are not obligated to sell for the marked price. This is because displaying goods for sale is an invitation to treat, not an offer (see: Fisher v Bell (1961), Partridge v Crittendon (1968)). In general, in a standard retail transaction the contract is made and concluded at the checkout. There have been attempts to construe the selecting of items for purchase as being an Acceptance of offer but these have generally failed (see: Pharmaceutical Society Of Great Britain v Boots (1952)). Some kinds of request to tender will also be construed as an invitation to treat. According to Blackpool And Fylde Aero Club v Blackpool BC (1990), a request to tender may, however, constitute an offer to consider the tender; such that a person who submits a tender which is ignored may have a cause of action.

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This glossary post was last updated: 29th March, 2024.