An invitation to treat indicates what to potential buyers?

An invitation to treat signifies that a seller is expressing an openness to receive offers from potential buyers rather than indicating that a legally binding contract is in place. Essentially, it is a preliminary step in the negotiation process, showing that the seller is inviting others to make offers for products or services. This invitation does not mean the seller is committing to sell the item at that moment; rather, it allows for potential buyers to express their interest and propose specific terms, thereby initiating discussions.

This approach protects sellers from being legally bound before determining whether they want to accept a specific offer. By framing their products or services as an invitation to treat, they retain control over the transaction and can negotiate terms with multiple buyers if necessary. This understanding is crucial in distinguishing between an offer, which creates an immediate legal obligation when accepted, and an invitation to treat, which is simply an invitation to negotiate further.