Invitation to Treat

Published by MBA Skool Team, Last Updated: January 22, 2018

What is 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."

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 6 categories.

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