Explain the meaning of an offer and Distinguish it from an invitation to treat

NotesQuizObjective Test

An Offer needs 2 things:

  1. A PROMISE to be bound on PARTICULAR (certain, specific) terms

  2. Capable of being ACCEPTED

An offer is NOT an Invitation to Treat (ITT)- as these are not capable of acceptance

An ITT is an invitation for someone to make you an offer

Examples of ITT

  1. Shop Window Items (Fisher v Bell)

  2. Goods on a Shop Shelf (Pharmaceutical Society of GB vBoots)

  3. Precise Public Adverts (Partridge v Crittenden)

  4. Share Prospectus

  5. Mail Order Catalogues

The special case Carlill v Carbolic Smoke Ball

Here there's a public newspaper  advert stating: 

"if you use the ball you won't catch flu! 

If you use and still catch the flu then you receive £1,000!

So sure are we that you won't catch flu we have put this £1000 in a bank that we cant touch"

Mrs Carlill used it and caught flu - Carbolic smoke ball thought they were ok as it was a public advert and so an ITT and not an offer - however the judge had a different opinion... here's why...

  • The advert was very precise and so could still be an offer

  • An advert to the world can still be an offer

  • £1,000 in bank shows intention to be bound by the contract

  • Mrs Carlill didn't have to tell you she accepted the offer - she did that by using it

    (So unilateral (one-sided) acceptance is possible

NotesQuizObjective Test