LAW011-1: Offer vs. Invitation to Treat in Business Law

This assignment solution for Law for Business Managers addresses three key areas. Part 1 analyzes the distinction between an offer and an invitation to treat, supported by relevant case law. Part 2 advises Claire and Ric on suitable business mediums (Partnership Firm and Private Company Limited by Share), highlighting the advantages and disadvantages of each for their consultancy firm. Part 3 examines the implications of working conditions for employees under health and safety legislation. The assignment provides a comprehensive overview of contract law principles, business structures, and legal compliance within a business context.

Law for Business Manager

Table of Contents
INTRODUCTION...........................................................................................................................................3
PART 1.........................................................................................................................................................3
Discuss, with reference to key cases, the difference between an offer and an invitation to treat..........3
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
REFERENCES..............................................................................................................................................10

INTRODUCTION
Law for business manager is crucial in context of commercial sector as it has the
capability to guide that how any of the decision should be taken. It is also a branch of business
law which simply tells that law for business manager must be consider by any of the manager
working within the business entity. This is among the law which guides manager that how they
needs to take any of the decision and what are main responsibility which they must fulfil while
working within the premises of a company. In terms of the file, three parts are there where first
part will discuss about the offer and invitation to treat. It is equally necessary that while
addressing this question, some of the questions will be also discussed. Similar, in second
question, highlight will be upon types of organization and which one is suitable for starting any
of the consultancy firm. Finally, some of the legislation related heath and safety will be focused
and what any of the employer should consider them within their business entity.
PART 1
Discuss, with reference to key cases, the difference between an offer and an invitation to treat.
In any of the nation, commercial sector has a huge importance as it is the main source
through which economic condition of the nation can be improved. At the same time, it is
essential to understand that while performing any of the business activity there are number of
occasion where organisation has to enter into the contract. It means that developing legal relation
is equally important in context of business organisation and for that contract law can play the
vital role. As question requires the discussion on offer and invitation to treat which means that
there is a requirement of understanding the concept of contract law as both are the subpart of
contract law, which has been further discussed below in detail:
Contract Law: It is the law which helps to form legal relationship between two parties
where both of them has to perform specific task so that goals and target can be accomplished.
Talking about contract law in detail, it is essential that once contract has been formed, it becomes
the responsibility of contracted party that they must follow proper law and regulations (Allen,
Kraakman and Subramanian, 2016). As per contract law, it is necessary to perform only those
terms and condition for which contract has been formed and failure to meet out the requirement
will create the circumstances of breach of contract. It is means that in any of the condition person

must not breach the contract as if they fails to do so then legal action can be taken against them.
In order to form any of the contract, there is a requirement of offer and acceptance. It is means
that contract can be formed only in that respective condition where offer is made to which
acceptance should be shown by the offeror.
Offer: It is the initial stage for forming any of the contract which simply tells that how
any of the contract is required to formed. Although, it is initial process in any of the contract but
it is equally important that offer is the only way through which contract can be formed. As all of
the terms and condition are dependent upon offer which means that any of the offer should be
valid in nature else it is not possible to form any of the contract. The only work that offeror has
to do is to make offer where it is totally dependent upon another party that whether they are
willing to accept the offer or not (Johnston, Segrestin and Hatchuel, 2018). In any of the offer,
terms and condition are not negotiable in nature once acceptance is shown by the party. Also, if
offer has been accepted, chanced of revocation is not available in it, as it forms the legal contract.
Invitation to treat: It is necessary to understand that invitation to treat is a type of
condition that only invites the party for the purpose of making a valid form of offer. This are
never binding in nature. It means that if any of the person provides the information about the
offer to the party then it will not be terms as offer only condition are placed in it. Here, biding
system is followed which indicates that once bidding is started, parties must show their
acceptance to it. It simply helps to ensure that goals are accomplish within the given time period.
Difference between offer and invitation to treat:
Offer Invitation to Treat
There are the terms and condition which is
placed to any of the specific person. Only two
parties can show their involvement in it.
It is also one of the forms of contract where it
is necessary to understand that advertisement
is necessary to be placed in it. The main
purpose of placing advertisement is just to
ensure about the terms and condition which
can be included in the contract.
Offer are placed for specific person which
means that there is no time-consuming
process in it while forming the agreement.
It is one of the lengthy procedures as number
of conditions is to be meet. For example:
advertisement is mandatory, inclusion of

terms and condition for the contract is
necessary.
Involvement of people in the contract is
limited in it.
It is essential to understand that invitation to
treat include a large group of people which
means that higher percentage of interest can
be shown by the interested people.
Some of the case laws
There was a landmark case in 1893 between Harvey v Facey AC 552 Privy Council,
which is related with offer. In this case, it was seen that Harvey has made offer for Facey
regarding the sale where products will be distributed at a lower price. This landmark clearly
indicates that offer was made to only limited number of person as it will not be applicable for
any of another person to whom offer was not made. The similar case was there which is related
to offer between Carlill v Carbolic Smoke Ball co [1893] 1 QB 256 where offer was made at
initial level. Further, it was found that the Carbolic Smoke Ball co was not able to work as per
the offer presented for Carlill. Looking at the circumstance Carlill sued Carbolic Co where he
succeeds easily.
Fisher v Bell [1961] 1 QB 394, Pharmaceutical Society of Great Britain v
Boots [1953] 1 QB 401 are the two cases which is related to invitation to treat. The main
purpose of presenting two different cases is just to ensure that many of the people can be
influenced easily if they take the help of advertisement (Gielnik, Zacher and Schmitt, 2017). In
other words, it is essential to understand that invitation to treat has the capacity to form the
contract where involved parties there to show their interest towards the advertisement.
At the end, it is concluded from the discussion that invitation to treat and offer are two
different terms within the contract. But, at the end both of them tries to form of the contact with
the help of different procedure.

PART 2
Advise Claire and Ric on two suitable business mediums highlighting the advantages and
disadvantages of each.
Commercial sector is completely dependent upon business activity where different form
of business is there which can be performed. The choice of performing business activity is
completely dependent upon the one who wants to invest within the business. The most important
thing is that whenever any of the investment is made, investor must have the knowledge
regarding it whether its advantages or disadvantages. It is needed because it will allow to ensure
all of the investor that how they are needed to conduct their business activity (Alexander, 2019).
In the same manner, Claire and Ric is willing to start the business, where there are only friends.
Although, they are willing to start the business but the main thing is that they are willing to take
loan so that some of the IT related machinery can be purchased. Purchase of all this machinery
will allow them to accomplish their goals in specified manner. By considering the requirement of
Claire and Ric, two different types of business have been discussed below which can be
beneficial for both of them.
Partnership Firm: It is the form of business which are unincorporated in nature because
it is never registered in the eye of legal system. In addition, this form of business never gets the
opportunity to sue and be sued in its own name. While defining partnership firm, it is defined as
the business where two or more people are required two can handle day to day business activity.
The major role in any of the partnership is being played by partnership deed which certain gives
idea about the roles and responsibility of each of the partners. There are basically two different
types of partnership is available and they are general partnership and Limited liability
partnership. Discussing it in detail about general partnership, it is easy to understand as it clearly
indicates that liability of all the partners in it is not limited and each of the decision are required
to be taken by mutual understanding (Agarwal, 2018). Whereas concept of Limited Liability
Partnership is different as it tells that among number of partners there will be one of the partners
whose liability will be not limited but remaining all of the partners will have enjoyed the liability
in it. As their liability in the business will be limited. Although, it is unincorporated business
firm still there are some of the condition which must be fulfilled. For starting any of the
partnership firm, requirement of HMRC is necessary including partnership deed.

There are certain advantages and disadvantages of partnership firm which has been
discussed below:
Advantages:
 Whenever any of the partnerships firm is started, it becomes easy for partners to manage
paper work as a smaller number of requirements are there in it.
 The partners in the firm has the advantage as tax benefits are always given to them.
Disadvantages:
 There are limited number of sources available for this type of business for raising the
fund.
 Partners ma have to suffer from the clause of unlimited liability as liability is never
limited in it (Dodd, 2017).
Private Company Limited by Share: It is also among the popular form of business
organisation where investor vastly shows their interest. In this form of business only limited
number of investors can take part to conduct business activity. The most important aspects in this
form of business is that in any of the situation, share is non-transferable to outsiders and even it
cannot be sold to any of the public once it is incorporated. It is one of the private form of
business which belongs to the category of incorporated business. To establish any of the private
business there are number of requirements which must be fulfilled because it is the only way
through which goals can be accomplished in it. The incorporated process of private company
limited by share starts with the selection process of name which is further followed by the
address of the company. As role of member is huge in it which means that there is a huge
contribution of investors in the company. Along with it, there is also a requirement of
Memorandum of Association and Article of Association (Peterson, 2018). Both of these
documents defined as the role and responsibility of members and other stakeholders who are
connected within the association. Once, process of all these documents are completed,
opportunity is available with members to submit the documents in Companies house along with
registration fee. There are number of benefits and drawbacks of establishing any of private
company limited by share and that has been mentioned below:
Benefits

 In this form of business roles and responsibility of each member is defined which means
there is no burden on single person in this form of business.
 The members who gets connected with organisation also has the opportunity that their
liability will be limited in the business which is the major benefit of for any of the
investors.
Drawbacks
 It is never easy to incorporate any of the private company limited by share because there
are number of legal requirements which is needed to be fulfilled by the management
which takes huge time period (Goshen and Squire, 2017).
 The concept of double taxation is applicable over here which is the major problem in this
form of business.
Among mentioned two types of business, it has been found that Claire and Ric want to
perform business activity at limited ground and for that the best option which they can choose is
partnership firm. This form of business will put less pressure on them to perform any of the
specific work and even paper work will be also limited. In addition to this they can easily raise
fund through the source of credit card or bank loan.
PART 3
Advise Josephine as to the implications of these working conditions for her employees under the
current health and safety legislation.
Case Study: The given case study suggests that the director of Best Body Ltd i.e.,
Josephine was unable to perform her part of work within the entity. There are number of
negative comments are coming around because of current condition of the organization. The
major problem within the entity is related to expose wires, leaking machines and more.
Advises
It is essential to understand that commercial activity has the number of restriction and number of
law has been commenced that is to be followed. As per the law, the relation between employer
and employee plays the vital role in success of any organization due to which management must
work effectively so that relation can be maintained among them. At the same time, given case

study suggests that management is unable to perform their part of work as per the requirement
which means that relation of employer and employee are not effective due to which company has
to suffer in attaining their goals and target. The detail discussion about the case has been
mentioned below:
Employment Law: The regulations which defines the relation between employer and
employee is termed as employment law. This law defines that how any of relation between
employer and employee can be maintained in a systematic manner. As per the law, employer and
employee both of them has a certain responsibility which they must fulfill. Talking about the law
and policy of employment law, it is the responsibility of employee to work as per the instruction
given by the employer or the management. At the same time, employer also have some of the
responsibility where they need to provide proper working environment, proper safety
equipment’s and many more (Hansmann and Kraakman, 2017).
Health and Safety at Work Regulations 1999: In premises of a organization there are
certain responsibility which must be fulfilled and for meet out the requirements, employer plays
the necessary role. It is essential that proper heath and safety equipment must be provided to
employees so that that can perform their work wisely. According to the respective act, there is
huge penalty for entity if they fail to meet out the requirement of the law. Some of the essential
criteria under the law are related with providing proper working environment, suitable floor
should be there. In addition to this, it is equally important electric wires should be managed
proper are some of the basic requirement of the law.
The given case scenario simply shows that the employee working within the Best Body
Ltd are facing number of issues on a daily basis and the reason behind all this activity is their
director. The employment law and healthy and safety law forces the business entity to follow
proper rules and regulation and must be able to provide proper working condition to each of the
employees. As it was mentioned that employees has to face problem because the electric wires
were not managed proper so it becomes the most important duty being improvisation. There are
some of the other duties as well such as placing fire extinguisher at different places within the
premises of a company because it will allow to control the situation if any of the problem arises.
More number of emergency exit should be there as well as working floor should not be slippery
(Rosenbloom, 2018). It is because if in case any of the accident takes place the employee might

have to suffer from huge injury. In addition to this, it is necessary for Josephine to provide safety
equipment while working within the premises of a company. All of this requirement of must be
met. If in case Josephine fails to do so then her company might have to face some of the serious
issues. Meeting out all of this requirement will certainly allow the organization to perform better
as their employee will feel free to perform their task as per the required manner.
CONCLUSION
From the above points, it has been understood that company requires manager because
there are some of the circumstances where their decision plays the vital role in accomplishing the
goals. Offer and invitation to treat are the two different terms but has a important role in forming
the contract. Whenever any of the organisation is required to be formed then it is essential to
understand that proper analysis should be done.
REFERENCES
Allen, W. T., Kraakman, R. and Subramanian, G., 2016. Commentaries and Cases on the Law of
Business Organizations: 2016-2017 Statutory Supplement. Wolters Kluwer Law &
Business.
Johnston, A., Segrestin, B. and Hatchuel, A., 2018, July. The Separation of Directors and
Managers: A Historical Examination of the Legal Status of Managers. In Academy of
Management Proceedings (Vol. 2018, No. 1, p. 12831). Briarcliff Manor, NY 10510:
Academy of Management
Gielnik, M. M., Zacher, H. and Schmitt, A., 2017. How small business managers’ age and focus
on opportunities affect business growth: a mediated moderation growth model. Journal
of Small Business Management, 55(3), pp.460-483.
Agarwal, A. K., 2018. Business law for managers: Kaleidoscopic tales.
Dodd, E. M., 2017. For Whom are Corporate Managers Trustees?. In Corporate Governance
(pp. 29-47). Gower
Peterson, E., 2018. Empowering Business Policy & Strategy through Improved Collaboration
between Managers and in-House Counsel. Atl. LJ, 20, p.225.
Goshen, Z. and Squire, R., 2017. Principal Costs: A New Theory for Corporate Law and
Governance. Colum. L. Rev., 117, p.767.
Hansmann, H. and Kraakman, R., 2017. The end of history for corporate law. In Corporate
governance (pp. 49-78). Gower.
Rosenbloom, D. H., 2018. Administrative law for public managers. Routledge.
Alexander, E. A., 2019. Whither our future global managers? The moderating effect of
organization context on ethical intent in international business