Offer v Invitation to Treat.docx - Offer v Invitation to...

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Offer v Invitation to Treat What is an offer & what is an invitation to treat?
What are the main differences between the two?
– An advertisement is usually an invitation to treat. Here it was the starting point for negotiations with anyone reading it and responding to it. However be careful, because if clear words intending to be bound are used and there is certainty of all the terms an advertisement could be an offer, rather than an invitation to treat. Statement of Price Harvey v Facey [1893] – Statement of price is usually an invitation to treat. Be careful however, as if the shop binds itself to accept a certain price by signs there may be an offer which is accepted by going to the counter. For example, if a shop says “We will sell every item in our shop for 99p” this could be construed as i) containing all the terms, ii) sufficient certainty of all the terms and iii) capable of being accepted without further negotiations. Auction sales In practice there is usually an agreement every bidder and seller must sell setting out whether bids can be withdrawn, etc. and the two cases below are subject to contrary indication.

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