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Invitation to treat, sometimes described as an invitation to offer, is a concept in contract law that refers to a communication which invites others to submit offers, rather than a binding proposal itself. In this sense, an invitation to treat signals willingness to negotiate but does not create a contract upon its own terms.

The key distinction is that an offer, if accepted, creates a binding contract, whereas an invitation to treat invites offers from others. The party making an invitation to treat is not bound to accept any offer that comes in. A contract is formed only when one of the invited parties makes an offer and that offer is duly accepted.

Common examples include advertisements, price lists, and displays of goods in shops. An advertisement is typically considered an invitation to treat rather than an offer, meaning a retailer is not obligated to sell to the first customer at the advertised price. Similarly, catalogues, price tags, and tender invitations are generally treated as invitations to negotiate rather than final offers. In tender processes, the organization invites bids, and the submitted bids are offers that the issuing authority may accept or reject.

Auctions illustrate another common context: the auctioneer’s call for bids is an invitation to treat, while each bid is an offer. The auctioneer’s acceptance, or the hammer’s fall, typically creates the contract, often subject to any reserve price or auction rules.

Exceptions exist where a statement may operate as an offer, such as unilateral contracts or very specific terms that leave nothing for negotiation. The precise treatment depends on jurisdiction and the wording used. Understanding invitation to treat helps clarify when a binding agreement has actually formed in negotiations and sales.