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Offer and Invitation to Treat Essay

  • Submitted by: ttaw118
  • on February 27, 2014
  • Category: Miscellaneous
  • Length: 2,876 words

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Below is an essay on "Offer and Invitation to Treat" from Anti Essays, your source for research papers, essays, and term paper examples.

Offer/ Invitation to treat
Treital defines a contract as :
  * An agreement
  * Giving rise to legal obligations
  * Which are enforced or recognised by law
Offer: is a statement by one party of willingness to enter into a contract on stated terms provided that these terms are, in turn, accepted by the party or parties to whom the offer is addressed ~ offer can be made orally, in writing or by conduct.

To amount to an offer, the offeror must make a clear, unequivocal statement that he will regard himself as legally bound to perform his promise if the other party accepts his offer. You have to make a promise that is enforceable if the other party says yes then you agree to go ahead with the agreement.

Invitation to treat is part of the negotiation process. Simply an expression of willingness to enter into negotiations which, it is hoped , will lead to the conclusion of a contract at a later date

Distinction is intention ~ that is did the maker of the statement intend to be bound (legally binding agreement) by an acceptance of his terms without further negotiations or did he only intend his statement to be part of the continuing process?

Gibson v Manchester City Council: council refused to sell the house to Mr Gibson because they claimed that no contract had been concluded for the sale of the house.

The statement of “may be prepared to sell” is not an offer HoL stated.
Storer v Manchester City Council :   there was an intention, Mr storer was allowed to buy his council house ~ Mr storer said he would like to buy the council and the clerk who received his letter sent him a standard form agreement. The court held that a contract had been concluded where the negotiations had advanced beyond the stage reached in Gibson but had not resulted in an exchange of contracts.

What is it if not an offer?
• Invitation to treat ~ invitation to make an offer, if you come to me and make an offer I may accept it. A product on display for sale is not an...

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