Menu Close
  • Author
  • Abstract
  • Table Of Contents
  • Citations
Latest posts by Jonathan Kush (see all)

    The distinction between and offer and invitation to treat can be hard to draw. This is because it will depend on the elusive criterion of intention. But it can be challenging to differentiate between the two in some cases, there are certain stereotyped situations that demarcate the distinction clearly based on the rules of law. Using case law examples, this free sample essay distinguishes the difference between an offer and an invitation to treat.

    HARVARD

    Jonathan Kush (2017) " Distinguish between an offer and an invitation to treat giving examples to illustrate the distinction" 123 Writing [Online] at https://www.123writing.com/sample/distinguish-between-an-offer-and-an-invitation-to-treat-giving-examples-to-illustrate-the-distinction

    Business Law Case Study


    Key Learning Outcomes

    By the end of the case, students should be able to:
    • Understand what an offer is and how it differs from an invitation to treat
    • Use case law examples to argue the differences between the two
    • Make own conclusions based on case study example

     

    Distinguish between an offer and an invitation to treat. Give examples to illustrate the distinction


    The Distinction Between An Offer And An Invitation To Treat Is Often Hard To Draw As It Depends On The Elusive Criterion Of Intention. But There Are Certain Stereotyped Situations That the Distinction Is Determined by Rules of Law.

    Introduction

    An offer is made when a person shows a willingness to enter into a legally binding contract. An invitation to treat (I.T.T) is merely a supply of information to tempt a person into making an offer. However the distinction between the two can often be misleading and ultimately misinterpreted. When misinterpretations and complications occur then it is down to the courts to decide and to distinguish between the two terms, so a person is not led into a binding contract of which he does not want to be a part of but is merely supplying information to which an offer is to be made (See Harvey V Facey [1893] A.C 552).
    ————————————————————————————————————————————————-
    Harvey V Facey [1893] A.C 552

    In this case, Facey (D) was in negotiations with the Mayor and Council of Kingston regarding the sale of his store. Harvey (P) sent Facey a telegram stating: “Will you sell us Bumper Hall Pen? Telegraph lowest cash price-answer paid.” On the same day, Facey sent Harvey a reply by telegram stating: “Lowest price for Bumper Hall Pen £900.” Harvey sent Facey another telegram agreeing to purchase the property at the asking price. D refused to sell and P sued for specific performance and an injunction to prevent Kingston from taking the property. The trial court dismissed on the grounds that an enforceable contract had not been formed and P appealed. The Supreme Court of Jamaica reversed and D appealed.

    Issue: Is a statement of the minimum price at which a seller would sell an offer?

    Holding and Rule: No. A mere statement of the minimum selling price is an invitation to treat and not an offer to sell. The court held that by replying to P’s question regarding the lowest price of the property, D did not make an affirmative answer to the first question regarding his willingness to sell. The court held that D had made an invitation to trade and not an offer.

    ————————————————————————————————————————————————-

    An invitation to treat is an action inviting other parties to make an offer to form a contract. These actions may sometimes appear to be offers themselves, and the difference can sometimes be difficult to determine.

    Already a Subcriber?

    Forgotten your password? Click Here

    Not a Subcriber?

    GET UNLIMITED ACCESS

    TO ALL OUR FREE SAMPLES

    FOR
    FREE

    Services We are Offering

    We are more than a free study and revision tool.
    We also provide on demand research and custom writing services.


    error: Copying this content is in breach of our Terms and conditions.

    WELCOME

    You are now Logged in.

    To access your Dasboard please click the dashboard button in the Main Menu

    Basic

    Annual pass for 12 months​

    Access To Free Sample Essays
    Access To Premium Samples
    Access To Strategy Case Studies
    Free On-Demand Custom Research
    Free Extra Assignments upto 5000 Words
    Free Exam Preparation & Study Help

    £0

    Premium

    ***Paid annually at £359.88

    Access To Free Sample Essays
    Access To Premium Samples
    Access To Strategy Case Studies
    Free On-Demand Custom Research (10000 Words Free)
    Free Extra Assignments upto 5000 Words
    Free Exam Preparation & Study Help

    £29.99

    Popular

    Standard

    ***Paid annually at £119.88

    Access To Free Sample Essays
    Access To Premium Samples
    Access To Strategy Case Studies
    Free On-Demand Custom Research (5000 Words Free)
    Free Extra Assignments upto 5000 Words
    Free Exam Preparation & Study Help

    £19.9£9.99

    Premium

    ***Paid annually at £359.88

    Access To Free Sample Essays
    Access To Premium Samples
    Access To Strategy Case Studies
    Free On-Demand Custom Research (10000 Words Free)
    Free Extra Assignments upto 5000 Words
    Free Exam Preparation & Study Help

    £29.99