BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Detailed explanation-1: -An advertisement is an invitation to treat because the supplier is making representations (giving information) to potential customers and inviting the customers to make offers to purchase the goods. Here is an example of advertising that would be considered an invitation to treat.
Detailed explanation-2: -In most scenarios, an advertisement is not considered an offer. They are considered an invitation to begin negotiations. The reason for this is because if a contract was formed, no one could ever advertise without fear of being sued.
Detailed explanation-3: -An invitation to treat is when you invite someone to make an offer. For example, you may merely deliver information to tempt the other party to make an offer. There is generally no intention to be bound by an invitation to treat, and it does not form a legally binding contract.
Detailed explanation-4: -A newspaper advertisement of goods for sale is usually considered an invitation to trade. If an advertisement contains a positive promise and a positive statement of what the advertiser expects in return, the courts will usually hold that the advertisement is an offer.