What is the Difference Between Offer and Invitation?
🆚 Go to Comparative Table 🆚The main difference between an offer and an invitation to offer (also known as an invitation to treat) lies in the intent and the resulting legal obligations.
An offer is a specific proposal made by one party to another to enter into a legally binding contract. It is an expression of one party's willingness to be legally bound by the terms of the offer. Once accepted, it results in the formation of a contract, and both parties are legally obligated to fulfill the terms of the agreement.
On the other hand, an invitation to offer (invitation to treat) is an expression of interest by one party to another, inviting the other party to make an offer. It is not a legally binding agreement and does not create any obligations for the party extending the invitation. Instead, it serves as a basis for the other party to make an offer, which can then be accepted or rejected by the party extending the invitation.
In summary, an offer is a specific proposal that can be accepted or rejected, resulting in a legally binding contract, while an invitation to offer is an expression of interest that invites the other party to make an offer without any legal obligations.
Comparative Table: Offer vs Invitation
The main difference between an offer and an invitation to offer lies in their intention and the resulting legal obligations. Here is a table comparing the two:
| Feature | Offer | Invitation to Offer |
|---|---|---|
| Definition | A specific proposal made by one party to another to enter into a legally binding contract. | A statement or action by one party that signals a willingness to enter into negotiations but is not a specific proposal or commitment to enter into an agreement. |
| Intention | Made with the intention of creating legal relations. | Made for the purpose of obtaining information or proposals, not creating legal obligations. |
| Acceptance | Can be accepted or rejected, creating legal obligations if accepted. | Cannot be accepted, only used as a basis for creating an offer. |
| Revocation | Can be revoked before acceptance. | Cannot be revoked. |
| Communication | Can be communicated directly or indirectly. | Communicated through advertisements, catalogues, etc.. |
| Examples | A company offering a job to a specific candidate. | A company advertising a job opening, inviting potential candidates to submit their applications. |
In summary, an offer is a specific and definite proposal to enter into a contract, which can be accepted or rejected and creates legal obligations if accepted. On the other hand, an invitation to offer is an act that leads to the offer, made with the aim of inducing or negotiating the terms, and does not create legal obligations.
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