LEGAL PRINCIPLE: CONTRACT LAW — Offer and Acceptance — Invitation to Treat Distinguished from Offer
PRINCIPLE STATEMENT
An invitation to treat is not an offer that can be accepted to lead to an agreement or contract and therefore cannot form the basis of any cause of action.
RATIO DECIDENDI (SOURCE)
Per Uwaifo, JSC, in Neka B.B.B. Manufacturing Co. Ltd v. African Continental Bank Ltd (2004) NLC-321997(SC) at p. 33; Paras B–C.
"An invitation to treat is not an offer that can be accepted to lead to an agreement or contract and therefore cannot form the basis of any cause of action."
EXPLANATION / SCOPE
An invitation to treat is not a binding offer. The principle applies to contract law. It cannot be accepted to form a contract. The rule distinguishes between preliminary negotiations and offers. No cause of action arises from an invitation to treat. The principle is well-established.