An offer is an expression of
willingness to enter into a legally
binding agreement without further
negotiation.
The communication in an offer
must be: 1. Sufficiently specific
in terms of the main obligations.
2.be capable of immediate
acceptance. 3. Intended to be
legally binding.
What is an Invitation to Treat
An invitation to treat is simply a wish to open up
negotiations. The language used is important in
distinguishing whether there is an offer or ITT. This
is determined objectively and was established in
the case Gibson v Manchester City Council [1979]
Self Service Displays. e.g. Pharmaceutical Society of
G.B. v Boots [1953}. The display of goods on
supermarket shelves was merely an invitation to
customers to make an offer to buy.
Shop Window Displays.e.g. Fisher v
Bell [1961]. A display of goods in a
shop window with an attached price
ticket is merely an invitation to treat not
an offer for sale.
Auction Sales
Payne v Cave [1789].
Bids constitute offers
which are accepted by the
fall of the hammer.
S. 57 (2) of the Sale Of Goods Act
1979 codifies Payne v Cave.
2 Situations that require
special consideration
1) Auction Sale 'Without Reserve'. Warlow v
Harrison and obiter later confirmed In Barry v
Heathcote Ball & Co ltd [2001].
2) 'Sealed Bid' Auction. Harvela
Investments v Royal Trust of
Canada [1986] Invitation to
tender amounts to a unilateral
offer- offer must be accepted to
the submission of the highest
bid.