Difference between an offer and an invitation to treat in contract law

LAW FOR BUSINESS
MANAGERS

INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
PART 1............................................................................................................................................3
Discuss, with reference to key cases, the difference between an offer and an invitation to treat3
PART 2............................................................................................................................................6
Advise Claire and Ric on two suitable business mediums highlighting the advantages and
disadvantages of each..................................................................................................................6
PART 3............................................................................................................................................8
Advise Josephine as to the implications of these working conditions for her employees under
the current health and safety legislation......................................................................................8
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
Law is one of the most important thing that is required in society to maintain law and
order within it. These are those kinds of rules and regulation which is helpful in maintaining
balance and peace in society. Business is that kind of activities which is related to forming of
organization to perform activities relating to buying and selling of goods. Contract laws are those
type of laws that has been formed to make financial agreement performed between two
organizations. Scope of business and law is very wider because it cover various aspects related to
establishment of business within an organization. Nature of business and law is dynamic because
it prescribes guidelines regarding process to be followed by business establishment. Things to be
covered in this file is based on contract law that has been dealing with activities of business. This
file is divided into three parts out of which two part contains case laws and questions has to be
answered based on it and one part has question regarding contract law and its elements.
MAIN BODY
PART 1
Discuss, with reference to key cases, the difference between an offer and an
invitation to treat
Contract law is that kind of law which is being recognized as that kind of documents
under this rights and duties are being mentioned as per the agreement signed between them. A
contract is legally enforceable only when requirements are being fulfilled as per the law. Under
these basically exchange of goods, services, money or promise is involved. There is a term that is
being used in it that is breach of contract which means that law is willing to award injured party
over access to legal remedies like damages or cancellation of it. Certain elements are there that
makes contract legal and they are mutual assent, expressed by a valid offer and acceptance;
adequate consideration; capacity; and legality. An offer may be defined as a statement showing a
desire to contract on certain terms and to be legally bound by those terms. On the other hand,
an invitation to treat is only inviting the party to make an offer
Harvey v Facey the facts are being given as follows:
Harvey sent a Telegram to Facey which stated: -
"Will you sell us Bumper Hall Pen? Telegraph lowest cash price-answer paid;"

Facey replied by telegram:-
"Lowest price for Bumper Hall Pen £900."
Harvey then replied:-
"We agree to buy Bumper Hall Pen for the sum of nine hundred pounds asked by you. Please
send us your title deed in order that we may get early possession."
In this it was held by Privy Council that contract is being concluded between parties
which means no contract has been conducted. As Facey has not directly answered any question
in direct manner and the first question as to whether they would sell and the lowest price stated
was merely responding to a request for information not an offer. There was thus no evidence of
an intention that the telegram sent by Facey was to be an offer (Tsuruta, 2020)
Pharmaceutical Society of Great Britain v Boots
In this case boots has introduced over new self-services system within its shop in order
to make customers pick up goods from the window and put them into the basket and take them to
cash counter. Over this an action has been brought by the Pharmaceutical Society of Great
Britain in which the legality of the system was challenged that is regarding legality of the sales
made of pharmaceutical products that has to be sold in the presence of pharmacist. The court is
needed for determining of contract that come into existence.
In this case it was held by the court that goods on the shelf is an invitation to treat not an
offer and a customer takes goods till he does offer to purchase. Also shop has assisted the choice
of accepting the offer or not. That is why contract is concluded within till presence of
pharmacist.
Carlill v Carbolic Smoke Ball Co in this case a newspaper advert is being placed in which
the defendant stated that £100 reward will be paid by the Carbolic Smoke Ball Company. To
those persons coming in contract after influenza of using the ball for three times daily and
continuously for two weeks by following the printed directions with each ball. £1000 is to be
deposited with the balls and has been using in accordance over direction that caught flu. She is
sought over claiming which has been stating an reward of £10( Russell, 2020). The defendant
raised the following arguments to demonstrate the advertisement was a mere invitation to treat
rather than an offer:
Further in this case advert is sales puff and is lacking intend over offering. It is not possible
for making an offer to world. There was no notification over acceptance. Wordings is very vague
or wider which has been constituting an offer because of state with limited period over catching
the flu. In this no consideration or is being provided since the ‘offer’ did not specify over user of
ball and must have purchased them.
In this case court of appeal is being held that Mrs Carill is being entitled for rewards which
has been adverting through constituted and has been offering through various kinds of