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Words: | Submitted: Thu Nov 13 2003
... establish whether the letters sent by Astonia PLC to the local companies are to be regarded as being an offer or an invitation to treat? It is important to make mention of the fact that the letters are invitations for the companies to make offers for the widget machine, that is they are invitations to tenders. The rules of offer dictate expressions or statements, which are intended to induce other parties into making offers are not themselves considered an offer but an invitation to treat. Therefore displays in shops, offers in advertisements, and auctions sales are all treated as an invitation to treat. An invitation to tender is tantamount to making an invitation to treat. The case of Spencer v. Harding 1870, established the principle that the invitation for submissions of a tender would normally be an invitation to treat and the submission of a tender would be the offer. ...
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