How to distinguish an offer from an invitation to treat

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What are the two elements of a contract?
Intention to be bound on the term, sufficient key terms e.g. name of item and price
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What is an invitation to treat?
a statement indicating willingness to receive offers or negotiation e.g. 'I want to sell my laptop'. There is intention, but no terms
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Display of goods
Key case: Pharmaceutical society v Boots [1953]. It was seen as an invitation to treat on the grounds that the shopkeeper would evaluate the offeror e.g. a five year old, and decide whether or not to accept the offer.
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Auctions
Auction is an invitation to treat. Each bid is an offer, accepted by the fall of the hammer
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What are tenders?
An unconditional offer of a party to a contract to perform their part of the bargain. For example, if the contract is a loan contract, a tender would be an act of the debtor where he produces the amount owing and offers to the creditor.
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What is a call/ invitation for tenders?
an invitation to treat. To accept a tender is an acceptance and therefore a contract
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Other cards in this set

Card 2

Front

What is an invitation to treat?

Back

a statement indicating willingness to receive offers or negotiation e.g. 'I want to sell my laptop'. There is intention, but no terms

Card 3

Front

Display of goods

Back

Preview of the front of card 3

Card 4

Front

Auctions

Back

Preview of the front of card 4

Card 5

Front

What are tenders?

Back

Preview of the front of card 5
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