LawMeaning

Invitation to Treat

In one sentence

A display or communication inviting others to make an offer, not itself an offer.

Plain English

An invitation to treat is when someone displays goods or advertises services in a way that invites customers to make offers, but doesn't itself commit to a deal. It's the first step in a negotiation. When you see a price tag in a store or a listing online, that's usually an invitation to treat—you make the offer by trying to buy it, and the seller can accept or reject your offer. This protects sellers from being forced to sell at advertised prices if they run out or change their mind.

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Example

A car dealership puts a vehicle on the lot with a price tag of $15,000. A customer walks in and says, 'I'll buy it.' The price tag is an invitation to treat, and the customer's statement is the offer. The dealership can still say no and refuse to sell, even though the price was displayed.

Used in a sentence

“The store's display of merchandise on shelves constitutes an invitation to treat, allowing it to refuse sales at the marked price.”

Related terms

Advertisement
A public notice or display offering goods or services for sale.
Offer
A proposal to enter into a binding agreement on specific terms.
Acceptance
Agreeing to the exact terms of an offer, creating a binding contract.
Objective Theory of Contracts
The legal rule that contract meaning is based on what a reasonable person would understand, not secret thoughts.
UCC
The Uniform Commercial Code; a set of standardized laws governing sales of goods and commercial transactions.
Consideration
Something of value exchanged by each party to make a contract binding.
Offeror
The person who makes an offer to enter into a contract.
Offeree
The person who receives an offer and has the power to accept or reject it.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.