Invitation To Treat Case Study

Introduction

This case was brought before us to decide whether an advert is an invitation to treat or an offer, the major problem is to know if between Barry and Adam exist a legally binding contract , by the time to receive the letter from Adam ,Barry has sold already the car. At first Barry was intending to buy a Mercedes ,but when he made a counter offer Adam suggest him another car. We must know that when Adam introduced another car to Barry the contract has been changed because the contract relates the car “was changed”. Under the Restatement of Contracts, in general, a contract is formed by an offer and acceptance that is supported by consideration. The difference between an offer and invitation to treat is an offer simply means a definite statement that a person intends to be legally bound under certain condition will lead to a binding contract on acceptance, an invitation to treat can not be accepted it is merely an invitation for offer, an invitation to treat is a display or advertisement before the offer and acceptance. The main issue that we will deal with are : offer ,

Another issue of offer laps of time. An offer is only valid for a reasonable period of time. Therefore, a counter offer is not an acceptance and can be seen as rejection of the offer. If we look at this example from the book: [a request as to whether or not certain terms can be included in the contract does not amount to a counter offer and does not of itself terminate the offer. In Stevenson v.McLeon{1880} IR 233, the defendant offered to sell iron to the plaintiff for £2 per ton cash. The plaintiff wrote and asked if the defendant would provide credit facilities. The court held there was a contract as the enquiry was not a counter offer, it was request for information as to variation of terms. The court held it was not a rejection either and as such did not terminate the