Posted in Marketing and Strategy Terms, Total Reads: 523
Definition: Invitation to Treat
Invitation to treat is a contract law term which invites the customers to make an offer and negotiate. The consumer accepting the invitation does not mean an intention to be bound but only the consideration. Invitation to treat shows the willingness to deal which may include auctions (bidding), tenders and store displays.
It is different from an offer where the acceptance of consumer constitutes a sale.
Any advertisement (for example) price tag on goods in a shop window) is an invitation to treat which in other terms is ‘An offer to receive an offer’.
According to Andrew Burrows, an invitation to treat is "an expression of willingness to negotiate. A person making an invitation to treat does not intend to be bound as soon as it is accepted by the person to whom the statement is addressed."