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Contract: Essential Requirements and Formation

Offers and invitations to treat

  • 3 things to know
  • Components 2 and 3

Overview

Offer in contract law, invitation to treat and status of goods displayed in a shop window.

What you need to know

Answer each one before you reveal it.

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Numbers

When can an advertisement amount to an offer?

Key term

Define an offer in contract law.

Key term

What is an invitation to treat?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Define an offer in contract law.

    Model answer

    An offer is a statement of the terms on which the offeror is willing to be bound. A valid offer must be certain and made with the intention of being accepted.

  2. 2

    What is an invitation to treat?

    Model answer

    An invitation to treat is an indication that a person is willing to receive offers. The party issuing an invitation to treat is not bound by any acceptance of it.

  3. 3

    Which case shows that a statement about a possible sale is not necessarily an offer?

    Model answer

    Gibson v Manchester City Council [1979] concerned a council letter saying it may be prepared to sell a house. The House of Lords held the wording was not an offer capable of acceptance.

  4. 4

    How did Storer v Manchester City Council [1974] differ from Gibson?

    Model answer

    Storer v Manchester City Council [1974] involved a completed agreement for sale sent for signature. The Court of Appeal held the council had made an offer that the tenant accepted.

  5. 5

    What is the status of goods displayed in a shop window?

    Model answer

    Fisher v Bell [1961] held that a knife displayed in a shop window was an invitation to treat. The shopkeeper had therefore not offered the knife for sale.

  6. 6

    What did Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd [1953] decide?

    Model answer

    Goods on a self-service shelf are an invitation to treat, on the decision in Boots. The customer makes the offer at the till and the cashier accepts it.

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