Difference between an offer and an invitation to treat with cases

This article explains the difference between an offer and an invitation to treat in contract law, with relevant cases such as Pharmaceutical Society of Great Britain v Boots and Carlill v Carbolic Smoke Ball Co. It also discusses the legal implications and significance of these concepts.

LAW FOR BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART 1............................................................................................................................................3
Difference between an offer and an invitation to treat with cases .............................................3
PART 2............................................................................................................................................5
As per law of business provide an advice to Claire and Ric with two suitable mediums. Also
give advantage and disadvantages of it.......................................................................................5
PART 3............................................................................................................................................8
Advise Josephine over implication of such working conditions for her employee as per health
and safety legislation...................................................................................................................8
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
Law are considered to be that kind of rules and regulations which are being formed in
order to maintain discipline and order within an country. They deal with various aspects of
society. Business is considered to be that kind of activities which is focused over maintaining of
relationship between two parties. To deal with business related activities majorly corporate and
contract laws are used. Scope of both the laws are wider in a sense that they deal with business
related aspects. Nature is dynamic because they help in accomplishing of task in easier and better
manner. Further this file is based over contract law. Things to be covered in this file is that it is
divided into three parts first part contains question to be answered. Second and third part
contains case scenarios questions are to be answered regarding it.
MAIN BODY
PART 1
Difference between an offer and an invitation to treat with cases
Contract laws are those kind of laws which helps in forming of agreement that helps in
maintaining of relationship between two parties or organization. In order to provide legality to an
contract various elements are needed to be present within it and they are offer, acceptance, valid
consideration and legal status. Offer means when an party makes an offer to another party,
acceptance is another party accepting the offer, valid consideration is related to basic needs of
contract like purpose of formation, payment and objectives to be achieved within it. Legal status
means its validity within these type of law (Hollowayand et. al., 2017). Invitation to treat is that
kind declaration which is dependent over the willingness of entering into negotiations and cannot
be accepted over binding contract. In other words the treat is mealy an announcement to another
person that is prepared before entering into contract over certain things with services. In order to
understand in more clear manner cases in relevance to this is explained. Relevant cases to this is
explained as follows
Pharmaceutical society of great Britain V Boots this case Boots introduced the then
new self service system into their shops under which customers is to pick goods by themselves
from the shelf and put them in the basket. Till the time cash has been paid by them. An action
was brought by Pharmaceutical Society of Grate Britain for determining of legality of system in
regarding of sale of pharmaceutical products that is required by law to be sold in the presence of

pharmacist. In this the court is required to be identified over determining that has the contract
come into existence. Court held that goods on the shelf constitute over an invitation to treat not
an offer. Also customer takes goods till the time offer to purchase is made. Also shop assistant
chooses over accepting offer. It was found by the court that contract is therefore concluded till
presence of pharmacist.
Another case law is Carlill v Cabolic Ball Co this case was in the court of appeal. In this
case it was held that newspaper advert placed by defendant and stated that hundred euro reward
has to be paid by Carbolic Smoke Ball company to any person whose contract is influenced after
the ball is being used for daily two weeks according to directions printed over the supply with
each ball. Then thousand euro has been deposited with the Alliance bank, shewing with sincerity
in the matter. Mrs Carill purchase some smoke balls and has been using them accordingly over
the direction and caught flu. She sought to claim stated hundred euro reward (Handrlica,
2019).The arguments raised by defendant in the following arguments over demonstration of
advertisement and is considered with an invention to treat rather an offer to be made.
In this advert is being related over sale puff and lack of intent has to be offered. This
cannot be made possible over offer to world. Then there was no notification regarding
acceptance. Wording is also wider in order to make constituting an offer that has been made and
has been stating limitation of time for catching flu. As per this no consideration is required to be
provided that has been making offer with specification over the user of balls that is being
purchased by them. As per this it has been held over appeal that has been made by Mrs Carill.
This is entitled over rewarding of advert which has been constituting and offer is being
made over unilateral contract that has been formed. It is said that she has been accepting through
performing over conditions that is being mentioned under the condition that has been stated
within the offer. The court rejected all arguments that has been put forward by the defendant.
 Statement that is being refereed over making deposition of one thousand euro possible
that has been demonstrating that there is no sales puff.
 This makes over making of offer to the world.
 As per the unilateral contract it is not required to make offer communication with the
intention that has been accepting in full performance. Accepting of performance
undertakes such contracts.

Whilst there can be some kind of ambiguity in the wording which is capable of resolving
through confining those who caught flu whilst using the balls.
One more case top justify this is Harvey v Facey in which privy council was involved
facts of the case are as follows in which Harvey sent a Telegram to Facey which is been
explained as follows:
“Will you sell us Bumper Hall Pen? Telegraph lowest cash price and answer paid”. Facey
replied by telegram was that lowest price for bumper pen is nine hundred euro. Then Harvey
replied to the telegram. We agree to buy Bumper Hall Pen for sum of nine hundred pounds that
has been asked by you. Also sending of title deed was asked to gain early possession(Gaitán,
Herrera-Echeverri and Pablo, 2018).
In this Privy Council held that there was no contract that has occurred or concluded
between parties. Facey has no answered the question directly that was asked first. As the
question was related to selling at lowest price was just responding over request for information
not to an offer. That is why no evidence of an intention was there of sending telegram by Facey
that could be considered as offer.
All the cases that has been mentioned above is related to the concept of invitation treat or
offer. The main difference between offer and invitation to treat is that offer is directly being
offered whereas invitation to treat is being first made an depend over acceptance.
PART 2
Case scenario: Claire and Ric wishes to start an business as Business Management Consultants
in Hitchin, Hertford shire. That is why an approach was made by them to the local bank, Hustle
PLC in order to take loan for paying of some IT equipment and software licenses. The bank has
been willing to give money provided that what business medium is being approached by Claire
and Ric for doing business.
As per law of business provide an advice to Claire and Ric with two suitable mediums. Also give
advantage and disadvantages of it
Business laws are those kinds of laws which are being formed in order to help in forming
of business organization within an country. These laws are known as that kind of frame work
which deals with various aspects regarding business. They are consisting of certain guidelines
with rules that gives legal stability for an organization to be formed. There are certain kinds of

business medium like sole proprietorship, partnership, private company and public company.
Further they are being explained as follows:
Sole proprietorship: This is considered to be one of the simplest form of business that
has to be operated within business. Also sole proprietorship is not an legal entity. It simply refers
to as an business that is run by an individual who is considered to be owner of business. He is
responsible for all kinds of debts regarding business. In these kind of business operation are done
under the name of the owner or under an factious name. This can be a trade name and does not
from any kind of legal entity which is separate from its owner. Such business is popular business
because of its simplicity, ease of setup and less expensiveness. An sole proprietor is required to
register his or her name and secured local license when sole proprietor is ready to do business.
Having distinct disadvantage in this kind of business is that owner of sole proprietor should
remain personally liable for all business debts of it. If an sole proprietor runs into any kind of
trouble that is related to finance, creditor can sue only against the owner of business. Under such
suits there is successful the owner has to pay the debts that is being involved within the business
then he has to pay by himself (Favarel-Garrigues, 2019).
The owner of sole proprietor typically signing of contract takes place then singing is
done in the name of owner because he is not a separate identity of business as per the law. Owner
of such proprietor typically is having that kind of customers which does payment under his name
through checks even if fictitious name is used. Also sole proprietor is going to bring law suit by
using name of the owner. Sole proprietorship under this business lawsuits can be brought against
the owner. Business that has to begin as a sol proprietor and is new in the market can use it in
order to reduce complexity in doing business. Certain advantages and disadvantages are being
explained as follows:
Advantages of the Sole Proprietorship
 It is easy and inexpensive to be established.
 Sole proprietor carries out very little or no formalities.
 Sole proprietor is not required to pay any kind of unemployment tax over individual.
 Owner of business can easily mix personal assets with business.
Disadvantages of the Sole Proprietorship
 Owner in this is subject for unlimited personal liability through debts, losses and
liabilities within business.

 Owners of such business is required to raise capital through selling of interest in business.
 Sole proprietor can rarely survive the death or incapacity of its owner and cannot retain
value.
Partnership: In such kind of business creation of business is done when two or more
than two persons comes together with the enterprise for profit. Also consideration and guild-lines
related to this is being explained under the Partnership Act. In which it is explained that an
partnership firm is being formed when two or more persons comes together in order to carry
under which co-owner in business is only focused over forming of partnership. Intention is also
seen before forming partnership. Under partnership various forms- offers that is given with the
owner that is making flexibility and simplicity in an organization through operations. In limited
partnership and liability of limited nature is offering an degree of liability with protection.
Partnership can be formed wit handshake or through mutual consent. Partners should seek over
having partnership agreement memorized with partnership agreement through preferably with
assistance in an attorney. In this an partnership agreement is required to form between the
partners that can be oral or written. Purpose of partnership is based on motive to earn profit
(Boda and Zsolnai, 2016). Such agreements are responsible for forming an partnership that is
required to be gaining of result within the dispute and lawsuits. Further advantage and
disadvantages has been explained as follows:
Advantages of the Partnership
 Owners can establish partnership in easy and inexpensive way.
 Partnership is required over annual meetings that is required through ongoing formalities.
 In this favourable taxation is offered within smaller business.
 Partnerships often do not have to pay minimum taxes that are required of LLCs and
corporations.
Disadvantages of the Partnership
 Owner is subject unlimited personal liability for the loss and liabilities within the
business.
 Individual partners bear all the responsibility towards action with partners.
 Poor organization in partnership and oral partner is leading towards dispute within
owners.

In the above scenario business medium that is going to be accepted by Claire and Ric is
partnership that is going to lead over making the setting up of business successful and in
organized manner. Due to easy procedure to set-up an partnership it becomes cost efficient for a
new business to be formed.
PART 3
Case scenario: In this case Josephine is the founder and director of “Best Body Ltd”
which is a successful company that produces locally sourced vegan food with drinks and snacks.
In it currently there are 20 employees working within the factory in which production and
packaging is done of Best Body goods. Various negative comments is being made by Josephine,
employees over the factory condition. Also they have made complain regarding expose wire,
leakage in machine that has made factory floor very much slippery and lack of fire extinguishes
within the building. Over that doors of fire exit does not open and no written health and safety
standards is followed (Bird, 2016).
Advise Josephine over implication of such working conditions for her employee as per health
and safety legislation
Health and Safety at work Act 1974 lays down various range of duties of employer which
are being formed for protection of health, safety and welfare at workplace of employees working
in an organization. Various other things are included within it like casual workers, self-
employed, clients, visitors and general public. Such duties is required to be qualified and
followed till the time new amendment or Act is being introduced. In this employers can argue
over cost which is of particular safety measure which is not justified or norms of organization
with the act. This has allowed government to deal with various issues that has been accruing
regarding safety of employee. Also certain guidance and regulation is been given by the
government which makes it an concrete framework approved under Code of Practices for
employers. Details over responsibility of employer with coverage of various aspects at work
place is being covered under it. There are various duties that has to be followed by employer for
ensuring of safety and health standards to be maintained within an organization. Such duties are
mandatory to be followed in order to make employees work in better condition with impacting
there safety and health at workplace. Employer's duties within the Health and Safety at work Act

1974 is majorly focused on health and safety which has to be maintained at workplace and these
duties are given as follows:
1. It is the duty of employer to provide an strong system which promotes all kind of safety
practices that is important for an organization to follow towards employees. This makes
employees aware about health standards within an organization(Cameron and Pagnattaro,
2017).
2. It is the duty of employer to use all kinds of security measures to make workplace
secure . This includes installing of cameras, utilizing of bio matrix. This makes an
employee feel secure and trust is also maintained over an organization. Employees
security is also very important part of employers working protocol.
3. Another duty of employee is to seek over the equipments that are being used for
completing the process in order to accomplish a task. In this conditions of various
equipments like machinery and tools has to be check. Technology is being covered with
various aspects to be analysed.
4. Persons working with the employees should also be monitored which means that
behaviour of employee should also be monitored for solving of dispute if accrued.
Employer is considered to be responsible of the impact of decision made by staff and
manager.
5. There should be proper carrying out of risk assessment which is going to make an
employer deal with ant kind of problem that can occur after taking risk. This kind of
assessment is helpful in controlling of impact of risk in better and effective manner.
6. Information should be given to workers about the potential hazard that is associated with
the working or utilizing of particular equipment. These are majorly followed under
chemical substance or activities and includes training and supervision within it.
7. Inspection of day to day safety and health measures is to be done and appropriate
authority should be appointed for such purpose. An inspection team has to be prepared
that has to monitor about standards of health and safety within an organization.
8. The last thing is that there should be adequate facility and rules to be mentioned within an
organization. Employee shall not be exploited or discriminated on any basis and equal
opportunity should be given to them to work.

The duties that has been mentioned above covers various aspects and conditions which
can impact process of working in efficient manner. These duties are bound to be followed by
employees that makes work place safe and secure for employees.
From the above scenario it is clear that an employee working in “Best Body Ltd” are not
being provided with proper safety and health measure which has been prescribed under the act.
So, it is the responsibility of Josephine to take care of all problems occurring at workplace. For
this purpose she is required to appoint an team to accomplish task that monitors problems and
submit report to her.
CONCLUSION
From the above file it can be concluded that an business and laws are interrelated to each
other because they help in establishing of business organization within an country. Further in this
file invitation to treat and offer difference is covered with relevant cases. In second part two
types of business medium is discussed with advantages and disadvantages. In the end health and
safety measure is being covered as per the given case scenario. Specific act regarding it has been
explained.

REFRENCES
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