offerinvitation

Offer invitation, more commonly called an invitation to treat, is a term used in contract law to describe communications that invite others to make offers rather than binding the party who issues them. The distinction between an offer and an invitation to treat helps determine when a contract is formed. An offer is a clear, unequivocal promise to be bound on specified terms upon acceptance; an invitation to treat signals a willingness to negotiate and to invite offers from others.

Common examples include shop displays and price tags, catalogs and price lists, and many advertisements that are general rather than targeted at a specific person. In these contexts, the seller or publisher typically does not bind themselves to sell at the stated terms; instead, they invite customers to make offers to buy. Auctions illustrate another well-known example: bids are the offers, and the auctioneer’s acceptance of a bid forms the contract.

Exceptions occur when the language used is unambiguous and clearly creates an obligation upon performance or acceptance, such as certain reward offers or highly specific promises in advertisements that leave no room for negotiation.

Jurisdictional differences may exist, but the core idea remains central to contract formation: an invitation to treat does not by itself create a binding contract, whereas an offer, once accepted, creates an agreement. Understanding this distinction helps determine when acceptance is effective and what constitutes an assent to contract terms.