a) Distinguish between invitation to treat and an offer. Identify TWO examples of invitation to treat.

(8 marks)

  • Invitation to Treat: A request from one person to another asking the other person to make a proposal for consideration. Invitations to treat have no binding effect and are a means of seeking information and inviting a prospective offeror to make a contractual offer. They are part of pre-contractual negotiations or statements. (3 marks)
  • Offer: A solid proposal where a contractual offer exists when an offeror makes known the terms upon which they are prepared to contract and promises to be bound by those terms if accepted by the offeree. (3 marks)
  • Examples of Invitation to Treat:
    1. Display of items for sale
    2. Advertisement
    3. Catalogue
    4. Auction sale
      (2 marks)

(Total: 8 marks)