Contract Formation

Question 1

d). An offer must be distinguished from an invitation to treat.

Answer 1

examples of invitation to treat?
• Selling goods in shops
• Selling goods at auction sales
• Selling goods privately by advertisements in newspapers, magazines, websites etc

e.g. FISHER V BELL 1961; British Car Auctions v Wright 1972

Question 2

Auctions

Answer 2

A common feature of an auction sale is that the seller specifies a minimum price that he/she is prepared to sell the product for.

-putting goods on sale at an auction amounts to AN OFFER not an invitation to treat

• If, for some reason, the auctioneer refuses to sell to the highest bidder then, although the bidder cannot sue the seller, he/she would have a legal claim against the auctioneer as a collateral contract is created between the auctioneer and the bidder.

e.g. Barry v Heathcote Ball

Question 3

Tenders

Answer 3

• Anyone who invites tenders has a legal obligation however to consider all submitted tenders and failure to do so will amount to breach of contract.

E.g. Blackpool & Fylde Aero Club v Blackpool Council 1990