teju2000
11-12-07, 04:10 AM
Here are few examples which will help you to understand in better manner difference between offer and invitation of offer...
Goods were displayed in the shop for sale with price tags attached on each article and self service system was there. One customer selected the goods. It was held that the display of goods was only an intention to offer and the selection of the goods was an offer by the customer to buy and the contract was made when the cashier accepted the offer to buy and received the price.
A prospectus issued by a company for subscription of its shares and debentures is only an invitation to general public to make an offer to buy the shares/debentures which may or may not be accepted by the company.
Similarly, an advertisement inviting quotations of lowest price in response to an enquiry amounts to invitation to offer but not an offer capable of acceptance. X sent a telegram to Y asking “Will you sell us Bumper Hall Penn? Telegraph Lowest Cash Price.” Y replied through a telegram “Lowest Price for Bumper Hall Penn £900.” X replied telegraphically stating “We agree to buy Bumper Hall Penn for £900 asked by you.” Held, the quotation of price by Y was a mere invitation to offer. Consent of X to purchase the estate for £900 was an offer.
Goods were displayed in the shop for sale with price tags attached on each article and self service system was there. One customer selected the goods. It was held that the display of goods was only an intention to offer and the selection of the goods was an offer by the customer to buy and the contract was made when the cashier accepted the offer to buy and received the price.
A prospectus issued by a company for subscription of its shares and debentures is only an invitation to general public to make an offer to buy the shares/debentures which may or may not be accepted by the company.
Similarly, an advertisement inviting quotations of lowest price in response to an enquiry amounts to invitation to offer but not an offer capable of acceptance. X sent a telegram to Y asking “Will you sell us Bumper Hall Penn? Telegraph Lowest Cash Price.” Y replied through a telegram “Lowest Price for Bumper Hall Penn £900.” X replied telegraphically stating “We agree to buy Bumper Hall Penn for £900 asked by you.” Held, the quotation of price by Y was a mere invitation to offer. Consent of X to purchase the estate for £900 was an offer.