Which statement distinguishes an offer from an invitation to treat?

• A. An offer is a straightforward promise to be bound on particular terms; an invitation to treat invites others to make an offer
• B. An invitation to treat is a binding commitment to sell goods at stated terms
• C. An offer cannot be revoked
• D. An invitation to treat creates an immediate contract when displayed

Answer: (A)

The idea being tested is the difference in status between an offer and an invitation to treat. An offer is a definite statement of willingness to be bound on specific terms, so once it is communicated and accepted, a contract comes into existence. An invitation to treat, on the other hand, is not a binding promise; it invites others to make an offer. That distinction is captured by saying an offer is a straightforward promise to be bound on particular terms, while an invitation to treat invites others to make an offer.

Think of a shop displaying goods with price tags as an invitation to treat—the display invites customers to make offers to buy, not a binding commitment to sell on those terms. The other statements blend in false ideas: an invitation to treat is not a binding commitment, it does not create an immediate contract when displayed, and an offer can be revoked before acceptance (subject to exceptions).