The word ‘proposal’ bears the same meaning as ‘offer’ in English law. Offer is an agreement between two or more parties is constituted by a proposal and an acceptance of it. An offer is made ‘when one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence’. For instance, thus A, by offering to buy B’s car for $10,000 in the hope that B will accept, is making a proposal. According to section 2(b), ‘when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted ‘. Upon such acceptance by B, an agreement between the parties is created. The proposal has become a ‘promise’ and the party making the proposal (proposer or offeror) is now referred to as the ‘promisor’ and the party accepting the proposal, the ‘promisee’. Therefore, in the example given above, B’s acceptance of A’s proposal to buy the car establishes an agreement or promise. A is the promisor and B the promise.
An invitation to treat is a pre offer to the interested party to make an offer. Invitation to treat not a proposal but a sort of preliminary communication which passes between the parties of the stage of negotiation, for instance, a price list, a display of goods with price tags in a self-service supermarket, an advertisement or an auctioneer inviting bids for a particular article. For example, the case relevant is a Pharmaceutical Society of Great Britain v. Boots Cash Chemist Ltd (1953) 1 QB 401. The case was about selling dangerous drugs without the supervision of pharmacist. The court decided that goods that are on shelves or display of goods are invitation to treat and will only be considered as offer once the interested party placed the goods on the counter and then it is depends on the cashier whether to accept or decline the offer.
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