What aspect distinguishes an offer from an invitation to offer?

The distinction between an offer and an invitation to offer primarily hinges on the intention behind the proposal. An offer is a definitive proposal made with the intention to create a binding agreement upon acceptance by the other party. It demonstrates a clear intention to be bound by the terms once accepted.

In contrast, an invitation to offer serves as an indication of willingness to negotiate or encourage others to submit offers, without creating a binding agreement on acceptance. For instance, advertisements are often viewed as invitations to offer, inviting potential customers to make offers to buy, rather than establishing an enforceable contract by themselves.

The clarity of the terms, while important in both cases, does not solely determine the nature of the communication as an offer or invitation. Similarly, the legal relationship established and the binding nature of the agreement are also influenced by the mutual intention and acceptance but do not fundamentally differentiate between these two concepts. The core element distinguishing them is indeed the intention behind the proposal, defining how seriously the parties are entering the realm of contractual obligations.