Corporate Law

The difference between an offer and an invitation to treat

Maria Salman

An invitation to treat is not an offer but an invitation to bid or bargain for an item.
For example, at an auction persons may bid on various items presented. An
invitation to treat also occurs also when goods are advertised for sale in the media
or in shop windows. Goods in a shop window or goods advertised are not an offer by
the owners of the goods but are technically an invitation for interested persons to
make an offer.
An offer is a statement of the terms which the client (the offeror) is prepared to be
contractually bound. The offer must be complete, specific and capable of being
accepted. It must include the fundamental terms of the agreement with the
intention that no further negotiations are to take place.
An offer is made when a person shows a willingness to enter into a legally binding
contract. An invitation to treat (I.T.T) is merely a supply of information to tempt a
person into making an offer. Basically, an ITT is advertisement (made by the seller)
and the offer is when the customer approaches the seller with an offer to buy.