Understanding the fine line between an offer and an invitation to treat
The case of Harvey v. Facey is a cornerstone in contract law, clarifying the distinction between an offer and an invitation to treat. It established that merely quoting a price does not amount to an offer but is an invitation to negotiate.
No Offer: The court ruled that Facey’s reply was an invitation to treat, not an offer, as it lacked a clear intent to be legally bound.
No Contract: Since there was no offer, there was no valid acceptance or contract.
Under the Indian Contract Act, 1872:
The case emphasizes the necessity of distinguishing between an offer and an invitation to negotiate, forming a crucial principle in contract law.
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