offer and invitation to offer

Dear Querist,

The difference between offer and invitation to offer is very basic and lies mainly in the ‘intention’ of the parties. While an offer directly allows the other party to enter into a contract (that is, a legally binding agreement) as soon as it is accepted, an invitation to treat mainly invites the other party to make negotiations and himself make an offer to the seller.

When we go to a bookshop, the mere display of the books in the shop is an invitation to treat the bookseller to the general public. Anyone passing by the shop can choose to come to buy one of his books or may choose otherwise. Here, no one is legally bound to perform any action. Similarly, most forms of advertisements are not actually offers but invitations to offer. To fully grasp the difference, let us understand how the offer and invitation to offer has been defined, separately.

Regards, 

Palak