In legal terms, what is considered "an invitation to treat"?

An invitation to treat refers to an action that indicates a willingness to negotiate or solicit offers, rather than constituting a binding offer itself. When a business advertises goods for sale, it is inviting potential customers to make an offer to buy the products. This does not create a legal obligation for the seller to sell at the advertised price; instead, the advertisement serves as an invitation for customers to engage in further negotiations.

In the context of contract law, while a formal offer creates the potential for a binding agreement once accepted, an invitation to treat does not carry the same weight. It is merely an indication of readiness to enter negotiations, allowing the seller to assess and accept or reject offers from buyers. This distinction is crucial for understanding how agreements are formed and the legal implications of various communications in the market.

Advertising goods for sale clearly embodies this principle, as it encourages customers to approach the seller with offers, demonstrating that the goods are available but not committing the seller to an immediate transaction.