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9084 · 3.1.2

Offer and acceptance

9084 Contract — invitation to treat, communication, revocation, and acceptance rules.

Need to know

What you need to know

  • An offer shows a clear 'willingness to be bound' on stated terms.
  • An invitation to treat (ITT) is an invitation to negotiate or to make an offer.
  • Advertisements, displays of goods, auctions and tenders are generally presumed to be ITTs.
  • The case of *Carlill v Carbolic Smoke Ball Co* provides an exception, showing an advertisement can be a unilateral offer to the world.

Explanation

Offer and acceptance

  1. An offer shows a clear 'willingness to be bound' on stated terms.
  2. An invitation to treat (ITT) is an invitation to negotiate or to make an offer.
  3. Advertisements, displays of goods, auctions and tenders are generally presumed to be ITTs.
  4. The case of *Carlill v Carbolic Smoke Ball Co* provides an exception, showing an advertisement can be a unilateral offer to the world.