What is an Invitation to Treat (ITT)?

What is an Invitation to Treat (ITT)?

• A. Statement indicating willingness to receive offers or negotiation
• B. An offer that is binding
• C. Acceptance of a contract
• D. A legal remedy

Answer: (A)

An invitation to treat is a statement indicating willingness to receive offers or negotiation, not a binding promise to sell. It starts the process of forming a contract by inviting others to make proposals. For example, items on display in a shop window, price lists, or advertisements usually function as invitations to treat: the seller isn’t obliged to sell to the first person who shows interest, but may accept one of the offers that come in or set terms for negotiation. A tender invitation also invites bids, and a contract is formed only when an offer is made and accepted, not simply by the ITT itself. The correct option captures this idea. The other possibilities describe a binding offer, the act of acceptance, or a remedy, which are different aspects of contract law.

An invitation to treat is a statement indicating willingness to receive offers or negotiation, not a binding promise to sell. It starts the process of forming a contract by inviting others to make proposals. For example, items on display in a shop window, price lists, or advertisements usually function as invitations to treat: the seller isn’t obliged to sell to the first person who shows interest, but may accept one of the offers that come in or set terms for negotiation. A tender invitation also invites bids, and a contract is formed only when an offer is made and accepted, not simply by the ITT itself. The correct option captures this idea. The other possibilities describe a binding offer, the act of acceptance, or a remedy, which are different aspects of contract law.