Contracts/Invitation to deal

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Template:Globalize/UK and Canada Template:Contract law An invitation to treat (or invitation to bargain in the United States) is a concept within contract law which comes from the Latin phrase invitatio ad offerendum, meaning "inviting an offer". According to Professor Andrew Burrows, an invitation to treat is:

"...an expression of willingness to negotiate. A person making an invitation to treat does not intend to be bound as soon as it is accepted by the person to whom the statement is addressed."[1]

A contract is a legally binding voluntary agreement formed when one person makes an offer, and the other accepts it. There may be some preliminary discussion before an offer is formally made. Such pre-contractual representations are known variously as “invitations to treat”, “requests for information” or “statements of intention”.

True offers may be accepted to form a contract, whereas representations such as invitations to treat may not. However, although an invitation to treat cannot be accepted it should not be ignored, for it may nevertheless affect the offer. For example, where an offer is made in response to an invitation to treat, the offer may incorporate the terms of the invitation to treat (unless the offer expressly incorporates different terms). If, as in the Boots case (described below) the offer is made by an action without any negotiations—such as presenting goods to a cashier—the offer will be presumed to be on the terms of the invitation to treat.

Case law

See also

Notes

  1. Burrows, A. (2009). Offer and Acceptance. A Casebook on Contract (2nd ed., pp. 5). Portland, OR, North America: Hart Publishing. (Original work published 2007).

References

  • Andrew Burrows, Casebook on Contract (Hart Publishing, 2007) Ed.