What type of document is an example of an invitation to offer rather than an actual offer?

Study for the CA Foundation Business Law Exam. Practice with multiple-choice questions, review detailed explanations, and ace your exam!

A price list serves as an example of an invitation to offer rather than an actual offer because it does not constitute a definitive commitment to sell at the listed prices. Instead, it communicates the terms under which a seller is willing to negotiate transactions but leaves open the acceptance of any specific offer from a buyer. This allows the seller to engage in discussions or adjustments regarding the price or terms based on individual circumstances, making it a mere invitation for potential customers to submit offers.

In contrast, a legal agreement typically signifies a mutual consent between parties, indicating that they are entering into a formal contract, while a contract proposal is generally put forth as a more specific offer with the intention to form a binding agreement. A subscription invitation also implies an offering but often includes conditions that need to be satisfied before a contract is formed, thus functioning similarly to a price list where the invitation to engage in further negotiations is evident.

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