1.1 An offer is an expression of
willingness to enter into a legally
binding agreement without further
1.1.1 The communication in an offer
must be: 1. Sufficiently specific
in terms of the main obligations.
2.be capable of immediate
acceptance. 3. Intended to be
2 What is an Invitation to Treat
2.1 An invitation to treat is simply a wish to open up
negotiations. The language used is important in
distinguishing whether there is an offer or ITT. This
is determined objectively and was established in
the case Gibson v Manchester City Council 
2.1.1 Self Service Displays. e.g. Pharmaceutical Society of
G.B. v Boots [1953}. The display of goods on
supermarket shelves was merely an invitation to
customers to make an offer to buy.
2.1.2 Shop Window Displays.e.g. Fisher v
Bell . A display of goods in a
shop window with an attached price
ticket is merely an invitation to treat not
an offer for sale.
3 Auction Sales
3.1 Payne v Cave .
Bids constitute offers
which are accepted by the
fall of the hammer.
3.1.1 S. 57 (2) of the Sale Of Goods Act
1979 codifies Payne v Cave.
3.2 2 Situations that require
3.2.1 1) Auction Sale 'Without Reserve'. Warlow v
Harrison and obiter later confirmed In Barry v
Heathcote Ball & Co ltd .
3.2.2 2) 'Sealed Bid' Auction. Harvela
Investments v Royal Trust of
Canada  Invitation to
tender amounts to a unilateral
offer- offer must be accepted to
the submission of the highest