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Invitation To Treat

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Invitation To Treat
An invitation to treat is an offer to negotiate or an offer to receive offers.

The following are situation that can be considered as invitation to treat:

1) Display of goods

Pharmaceutical Society of Great Britain v Boots Cash Chemicals (1952)

Boots operated a self-service store which included a pharmacy department. Customers would select items from the shelves and take them to a cashier’s desk at one of the exits where they were paid for. When a drug was involved, a pharmacist supervised the sale. The Pharmaceutical Society alleged that Boots infringed the Pharmacy and Poisons Act 1933 requiring the sale of certain drugs to be supervised by a registered pharmacist. The claim failed at first instance and the Society appealed.

The court decided that it was the customer who made the offer when he want to the cash desk, the sale or contract was made when the cashier accepted the consumer’s offer.

2) Tenders

Spencer v Harding (1870)

In this case, the defendants advertised a sale by tender of the stock in trade belonging Eilbeck & Co. The advertisement specified where the goods could be viewed, the time of opening for tenders and that the goods must be paid for in cash. No reserve was stated. The claimant submitted the highest tender but the defendant refused to sell to him.

The court held that unless the advertisement specifies that the highest tender would be accepted there was no obligation to sell to the person submitting the highest tender. The advert amounted to an invitation to treat, the tender was an offer, the defendant could choose whether to accept the offer or not.

3) Quotations

Scancarriers v Aoeteroa International Ltd (1985)

This case is about the shippers sent to the exporters a telex which stated, “we agree to a rate of US$120 and this rate will be held until 29/7/82.”

The judge decided that, as many matters such as the quantity of cargo, the number of shipments or dates of shipments had not been fixed, the quotation was not an offer
4)

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