invitation to treat

• definition:

  • an invitation for others to make an offer
  • it depends on the intention of the parties
• List of ITT:

  • advertisement
  • display of goods
  • auction
• advertisement:

  • exception: it will be an offer if the offeror guarantees a performance if anyone is interested to enter into contract
  • case: Carbolic Smoke Co. v Carlill (1893)
• display of goods:

  • exception: the display of goods at fixed price
  • display of goods + retailer's statements that he will sell the goods to customers = offer
  • case: HKSAR v Yu Wai Chuen (2001)
• auction:

  5 rules of Auction

  1. notice for an auction (ITT)
  2. auctioneer requested to register/submit the bid (ITT)
  3. the bidder makes a bid (OFFER)
  4. auctioneer falls a hammer (ACCEPTANCE)
  5. auction w/o reservation