John, with an intention to buy his dream car, a red convertible premium electric car, approaches to a dealership. However when he decided to go for a test drive, there was a sticker on the windscreen which states that 99,999 drive away –valid until June 30.
Issue: The issue here is that John has to make his decision whether to buy the car or not within the offer period. If he buys after the offer period there will be a comparatively higher price for the car. John was basically attracted to the offered price, which is valid only for a limited period of time. However, the dealership also has a right to provide offers on the saleable products. The car price mentioned on the windscreen is not a legal offer for sale. This is an invitation to treat, which is an invitation for others to make an offer.
Rule: The rule applied here is invitation to treat. Under this rule, the customers are invited to submit an offer. The customers can come to a deal with the other party and there will be no intention or pressure to get in to the deal.
Application: When this rule is applied, the dealership will get more customers attracted to them and it will enable more sale of the car during the offer period. This is due to the lower price offered in the offer period. Here, customers are not bound to buy cars and they can choose to buy or not within the offer period. Hence, application of this rule will not force customers to get in to a deal. The customers, on the other hand, get an opportunity to buy their desired cars on a lower price offered for a specific period.