Skip to content

Ask the Tutor ACCA LW

Difference between offer and invitation

Mmrhasanacca7y ago
Dear sir I can't understand the difference between offer and invitation Please explain the difference Thanks in advance Regards Rakibul
MikeLittleMikeLittleTutor7y ago#1
It's all in the lectures! An offer is from one person to another - X to Y - and, if Y accepts the offer, a contract is formed An invitation is, for example, where X says to Y "If someone would be prepared to pay me £20,000, I would be prepared to sell them my Ferrari" It's inviting Y to say "Yes, OK, I'll pay you £20,000 in exchange for your Ferrari" However, the statement by X was not an offer - it was an invitation. So Y cannot, by the response, claim that that response was acceptance of an offer - it was, in fact, an offer in itself from Y to X and it's now up to X to decide whether to accept Y's offer of £20,000 in exchange for the Ferrari An invitation is not capable of acceptance - it's there to invite others to make an offer. Thus, the person making the invitation is now, on receipt of responses received, in a position to decide whether to accept any of those responses Is that any better?
Sign in to reply to this topic.