Lecture Notes: Invitation to Treat

Introduction

• Importance of Topic: Distinction between an offer and an invitation to treat. A statement must have finality to be considered an offer.
• Definition: Invitation to treat invites the other party to make an offer.

Key Examples of Invitation to Treat

1. Display of Goods in a Shop

   • Display with a price list is an invitation to treat, not an offer.
   • Example: If a suit is displayed for 500 Ghana cedis, taking it to the counter is making an offer. The seller may accept or reject.
   • Legal Case: Fisher v. Bell (1961) - Display of a knife was an invitation to treat, no offense committed.
   • Legal Case: Pharmaceutical Society of Great Britain v. Boots Cash Chemists (1953) - Display in self-service system is an invitation to treat.

2. Advertisements

   • General Rule: Advertisements are invitations to treat.
   • Legal Case: Partridge v. Crittenden - Advertisement was an invitation to treat.
   • Exceptions:
     • Legal Case: Carlill v. Carbolic Smoke Ball Co. - Advertisement with specific conditions was deemed an offer (reward contracts).
     • Legal Case: Lefkowitz v. Great Minneapolis Surplus Store - Advertisement with clear "first come first served" was an offer.

3. Tenders

   • Invitation to tender is generally an invitation to treat.
   • Legal Case: Spencer v. Harding - Invitation to tender was an invitation to treat.
   • Exception: If tender notice states it will accept the highest offer, it becomes an offer (Harvela Investments Ltd v. Royal Trust Co. of Canada).

4. Auction Sales

   • General Rule: Invitation to bid at auction is an invitation to treat.
   • Legal Case: Harris v. Nickerson - Auction invitation was an invitation to treat.
   • Auction Without Reserve: Must sell to highest bona fide bidder; owner cannot bid (Warlow v. Harrison).
   • Auction With Reserve: Sale subject to reserve price and owner can bid once at start.

5. Circulation of Catalogues or Price Lists

   • Considered an invitation to treat, not an offer.
   • Legal Case: Grainger & Son v. Gough - Circulation of price list does not constitute an offer.

Conclusion

• Different forms of invitation to treat include display of goods, advertisements, tenders, auction sales, and circulation of catalogues.
• Importance of understanding distinction for legal and practical reasons.
• Next lecture will cover what constitutes acceptance.