Invitation to Treat in Law

Study Notes

Invitation to Treat

Definition: An invitation to treat is a preliminary communication that expresses a willingness to negotiate or receive offers, but does not constitute a definite offer.

Cases:

1. Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd [1953]

Facts: Boots Cash Chemists displayed goods on their shelves with prices, allowing customers to select and take them to the cash desk.
Holding: The display of goods with prices was considered an invitation to treat, allowing customers to make an offer to purchase.

2. Fisher v Bell [1961]

Facts: A shopkeeper displayed a flick-knife in his window with a price tag, but it was illegal to sell such items.
Holding: The display of the flick-knife was an invitation to treat, and the shopkeeper was not making an offer to sell an illegal item.

3. Carlill v Carbolic Smoke Ball Co [1893]

Facts: The Carbolic Smoke Ball Company advertised a reward to anyone who contracted influenza after using their smoke balls.
Holding: The advertisement was considered an offer, not an invitation to treat, as it was a unilateral contract that could be accepted by performance.

4. Partridge v Crittenden [1968]

Facts: A person advertised birds for sale in a newspaper, including a price.
Holding: The advertisement was an invitation to treat, allowing potential buyers to make an offer to purchase.

Invitation to Treat

An invitation to treat is a preliminary communication that expresses a willingness to negotiate or receive offers, but does not constitute a definite offer.

Cases

Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd

Boots Cash Chemists displayed goods on shelves with prices, allowing customers to select and take them to the cash desk.
The court held that the display of goods with prices was an invitation to treat, allowing customers to make an offer to purchase.

Fisher v Bell

A shopkeeper displayed a flick-knife in his window with a price tag, despite it being illegal to sell such items.
The court held that the display of the flick-knife was an invitation to treat, and the shopkeeper was not making an offer to sell an illegal item.

Carlill v Carbolic Smoke Ball Co

The Carbolic Smoke Ball Company advertised a reward to anyone who contracted influenza after using their smoke balls.
The court held that the advertisement was an offer, not an invitation to treat, as it was a unilateral contract that could be accepted by performance.

Partridge v Crittenden

A person advertised birds for sale in a newspaper, including a price.
The court held that the advertisement was an invitation to treat, allowing potential buyers to make an offer to purchase.

Advertisement As An Invitation To Treat

An advertisement is not a firm offer, but rather an invitation to others to make an offer.
The advertiser is not obligated to sell the product or service to anyone who responds.
The customer makes an offer to buy the product or service, which the advertiser can accept or reject.
Example: A company advertises a sale, and customers respond by making an offer to buy, which the company can accept or reject.

Display Of Goods

Goods displayed in a store with a price tag are an invitation to treat, not a firm offer.
The customer makes an offer to buy the goods by taking them to the checkout.
The store can refuse to sell the goods if they are out of stock or if there is a problem with the sale.
Example: A customer sees a product on a shelf, takes it to the checkout, and makes an offer to buy, which the store can accept or reject.

Unilateral Contracts

A unilateral contract is a promise in exchange for an act, rather than a promise in exchange for another promise.
It is an invitation to treat, where one party makes a promise in exchange for the other party performing an act.
The person making the promise is not bound until the other party completes the act.
Example: A company offers a reward for the return of a lost item, but is not bound to pay the reward until the item is returned.

Auctions

An auction is an invitation to treat, where the auctioneer invites bids from potential buyers.
The auctioneer is not bound to sell the item to the highest bidder until the auction is complete and the hammer falls.
The auctioneer can withdraw the item from sale at any time before the auction is complete.
Example: A person bids on an item at an auction, but the auctioneer is not bound to sell the item to the bidder until the auction is complete and the hammer falls.

Description

Test your understanding of invitation to treat, a concept in law that distinguishes between a preliminary communication and a definite offer. Explore the concept through case studies, such as Pharmaceutical Society of Great Britain v Boots Cash Chemists.