Offer to Treat

In one sentence

A preliminary invitation to negotiate, not a binding offer to enter into a contract.

Plain English

An offer to treat is when someone indicates a willingness to negotiate or discuss a potential deal, but doesn't make a firm, binding offer yet. It's an opening move in negotiations. For instance, a store displaying items with prices is generally making an offer to treat—inviting customers to make offers—rather than offering to sell at that price. The distinction matters because an offer to treat doesn't create a contract if someone accepts it; it just starts the negotiation process.

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Example

A real estate agent lists a house for $500,000. This listing is typically an offer to treat, inviting potential buyers to make offers. The agent isn't bound to sell at that price; the buyer's offer to purchase is the actual offer that the seller can accept or reject.

Used in a sentence

“The advertisement was deemed an offer to treat rather than a binding offer to sell.”

Related terms

Contract

A legally binding agreement between two or more parties to do or not do something.

Offeree

The person who receives an offer and has the power to accept or reject it.

Subjective Theory of Contracts

An older legal approach focusing on what the parties actually intended, regardless of their words.

Acceptance Upon Performance

Accepting a contract by actually doing what was requested rather than saying yes.

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.

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.

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.