Invitation to treat Contract

where advertised in newspaper or on poster, not constitute offer instead invitation treat, indication 1 or both parties prepared negotiate deal.

the carbolic smoke ball offer

an exception arises if advertisement makes unilateral promise, such offer of reward, in famous case of carlill v. carbolic smoke ball company, decided in nineteenth-century england. carbolic, medical firm, advertised smoke ball marketed wonder drug would, according instructions, protect users catching flu. if did not work, buyers receive £100 , company said had deposited £1,000 in bank show faith. when sued, carbolic argued advert not taken serious, legally binding offer; instead mere puff , or gimmick. court of appeal held appear reasonable man carbolic had made serious offer, , determined reward contractual promise.

although invitation treat cannot accepted, should not ignored, may nevertheless affect offer. instance, offer made in response invitation treat, offer may incorporate terms of invitation treat (unless offer expressly incorporates different terms). if, in boots case, offer made action without negotiations (such presenting goods cashier), offer presumed on terms of invitation treat.

auctions governed sale of goods act 1979 (as amended), 57(2) provides: “a sale auction complete when auctioneer announces completion fall of hammer, or in other customary manner. until announcement made bidder may retract bid”.