CONTRACT

In contract law, a valid contract must have
an offer and an acceptance by both parties. An offer is the terms of a contract
given out by a party ( A ). A intends that this offer is to be accepted by the
other party ( B ). If there is a consensus, the meeting of the minds, the
contract is then could be concluded.

An invitation to treat is only an invitation given out by B requesting A to
make an offer normally according to the wishes of B. So, there is no offer now
with this action of B. If A do it with the terms as stated by B, there is then
an offer made by A. B could accept it and then a contract is concluded. However, B could
still not accept it and may make a counter-offer or ask A to make an offer
again, an invitation to treat again.

A good example of contract law is the bus
fare you pay for it. In theory, the bus company is only inviting you to make an
offer of $1 for the journey. If you pay for it, the bus company still has
the ultimate right of acceptance of your offer. If the bus still goes after
taking your fare, there is then an acceptance of your offer by act.