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Contract and Invitation

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Contract and Invitation
1.Offer
1. Offer means a proposal by a person in which he makes his willingness to enter into a legally binding contract for some conside¬ration.
2. An offer is made with the object of getting consent of the offeree.
3. An offer can be accepted by the offeree.
4. An offer when accepted becomes an agreement.
Invitation to Offer
1. An Invitation to offer means an intention of a person to invite others with a view to enter into an agreement.
2. An invitation to offer on the other hand is made with
3. An invitation to offer cannot be accepted by the person to whom it is made.
4. An invitation to offer cannot be accepted at all.

2.An offer / proposal are necessarily for the formation of an agreement. Section 2(a) of Contracts Act 1950 said when person signifies to another his willingness to do / to abstain from doing anything, with a view to obtaining the assent of that other to act / abstinence, he is said to make a proposal and invitation to treat means an invitation to make an offer.

A) There are many distinguishing between offer and invitation to treat. The first distinguishing is from meanings. Offer is an expression of willingness to contract on certain terms made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed, the offeree. Invitation to treat different with offer it means an invitation to make an offer. An invitation to treat is not an offer, but an indication of a person's willingness to negotiate a contract. Based on the case:

COELHO v. THE PUBLIC SERVICES COMMISSION[1964] M.L.J.12

In this case, the applicant, a Health Inspector under the Town Board, Tanjong Malim, applied for the post of Assistant Passport Officer in the Federation of Malaya Government Oversea Missions advertised in the Malay Mail dated 19 February 1957. Consequently, the applicant was informed that he was accepted and, after undergoing training, he was posted to the Immigration Office, Kuala Lumpur, where

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