In contract law, it's crucial to distinguish between an offer and an invitation to treat. An offer is a clear expression of willingness to enter into a contract on specific terms, while an invitation to treat is merely an invitation to others to make an offer.
An offer is a definite promise to be bound, provided that certain specified terms are accepted. It demonstrates a clear intention to create a legally binding agreement.
An invitation to treat is an invitation to make an offer. It lacks the intention to be bound and is simply a preliminary stage in negotiations.
| Feature | Offer | Invitation to Treat |
|---|---|---|
| Definition | A definite promise to be bound by specific terms. | An invitation to others to make an offer. |
| Intention | Clear intention to create a legally binding agreement. | No intention to be immediately bound; preliminary negotiation. |
| Legal Effect | Acceptance creates a binding contract. | Cannot be accepted to form a contract; it's merely an invitation to negotiate. |
| Examples | A specific quote for a service, a reward offer. | Goods displayed in a shop, advertisements, auctions. |
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