Invitation to Treat in Law

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.