Cases According to Pakistani Law

1. Invitation to Treat (ITT)
An invitation to treat is an action inviting other parties to make an offer to form a contract. These
actions may sometimes appear to be offers, and the difference can sometimes be difficult to determine.
The distinction is important because accepting an offer creates a binding contract while "accepting" an
invitation to treat is actually making an offer.
Advertisements are usually invitations to treat, which allows sellers to refuse to sell products at prices
mistakenly marked. Advertisements can also be considered offers in some specific cases. Auctions are
sometimes invitations to treat which allows the seller to accept bids and choose which to accept.
However, if the seller states that there is no reserve price or the reserve price has been met, the auction
will be considered an offer accepted by the highest bidder.
1. Advertisements
Mr. Ishtiaq v Heaven Furniture
The auctioneer advertised that he intended to auction some office furniture, but withdrew the items
from the auction before the sale. The plaintiff (Mr. Ishtiaq) had made a special journey in order to
purchase the furniture and tried to sue the defendant for time lost in attending the auction. The court
held that there had been no contract and, therefore, that there could be no breach. The advertisement
constituted an invitation to treat and not an offer. The intention to hold an auction is not the same the
offer of items for sale, and, in any event, it would not be feasible to accept such an 'offer' prior to the
actual auction. Point of Law is an advertisement is usually an invitation to treat and not an offer. It is an
invitation to the prospective purchasers to make an offer which may then be accepted (or not) by the
advertiser.