Question

“A mere statement of intention is not an offer”. Explain with examples when in what situation the statement is not regarded as offers but as an invitation to others to made offers.

Answer 1

In case of an invitation to make an offer, a person making the invitation does not make an offer rather invites the other party to make an offer. The objective is to send out an invitation that he is willing to deal with any person who, on basis of such an invitation, is ready to enter into contract with him subject to final terms and conditions.

Example where A mere statement of intention is not an offer are :

- An advertisement for sale of goods by auction is an invitation to the offer. It merely invites bids made at auction.

- Red Herring Prospectus issued by a company, is only an invitation to the public to make an offer to subscribe to the securities of the company.

- A window display of goods in a shop is not an offer but an invitation to offer.