Difference between Invitation to Treat and Offer in Enterprise Law

ENTERPRISE LAW
STUDENT ID:

Question 1
Issue
The critical legal issue is to consider the difference between invitation to treat and offer so as
to outline if Carla has the legal right to refuse sale of book to Brendan.
Rule
A key question is whether display of goods in a shop with the price tag would constitute as
offer or invitation to treat. The relevant case law corresponding to this situation is
Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd [1953]
EWCA Civ 6 as it deals with display of medicines in the store. It was highlighted that this
display would be implied as only an invitation to treat (Taylor & Taylor, 2015).This means
that the seller is willing to negotiate the sale of goods with an interested buyer. Under the
given scenario, when an interested buyer approaches the seller with a proposal, it would be an
offer and not an acceptance (Edlin, 2015). This is because acceptance could be only given to
a matching offer which previously exists. Considering the given interpretation, the seller can
potentially give acceptance, deny the same or float a counteroffer ((Paterson, Robertson &
Duke, 2015).
Application
The case facts provide information that Carla is the sales representative at a book store where
books are displayed with their prices. The display of books would be treated as an invitation
to treat and not an offer for sale in accordance with the relevant rule discussion above.
Brendon is the interested buyer who intends to buy a book and has found a copy of the book.
He offered Carla the price for the book as highlighted at the specimen for display at window.
It is evident that the interested buyer Brendon has communicated an offer for the sale of book
at a specified consideration. Carla being the seller has the legal right to tender acceptance to
the offer or deny the same.
Conclusion
It is noteworthy that the display of book would be considered as invitation to treat and not
offer. Thereby, the communication by Brendon regarding intention to purchase the book is
not acceptance but offer which can be legally turned down by seller Carla without any legal
implications.
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Question 2
Part A
Issue
Taking into consideration the postal media of communication, the key issue is to highlight if
a valid agreement has been enacted between Greg and Edward.
Rule
A key component of offer and acceptance is the mode of communication that is used. This is
less relevance for the offer component considering that irrespective of the media used for
communicating the offer, it would become valid only when the same has been received by the
offeree. But mode of communication has relevance for acceptance as it impacts the timing.
This is of particular significance when the postal media is used for expressing acceptance
(Andrews, 2014). A case worth highlighting in this regards is Henthorn v Fraser [1892] 2 Ch
27. As per this case, the acceptance when communicated through post would come to force
at the very moment when the offeree posts the acceptance letter since the content of the letter
cannot be changed afterwards. This would imply that contract formation also is completed at
the very instant the letter is posted. Thus, any revocation of either acceptance or offer after
the contract formation would have no impact on the contract enforceability. Failure to fulfil
the contractual obligations after posting the acceptance letter would lead to breach of contract
(Carter, 2016).
Application
An offer has been sent using post as the communication medium from Edward to Greg on
February 4. However, this offer would not be valid till the time, the offer letter reaches Greg
which happens on February 7. Greg is willing to accept the offer given by Edward and
thereby communicates his acceptance for the offer through postal medium. The concerned
acceptance letter is posted on the same date (i.e. February 7) and hence a valid agreement is
enacted between Edward and Greg. After couple of days, Greg has sent a email stating his
desire to revoke the acceptance. This would not be valid even though the acceptance letter
has not reached Edward since acceptance is deemed to be valid from the moment of
acceptance letter being posted.
Conclusion
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