Not a contract: Invitation to treat and subject to contract

Invitation to treat:

  One party is willing to enter into negotiations but is not yet prepared to be bound immediately.

The UK courts have established that there is no intention to be bound in the following cases:

1.  Display of goods is only an invitation to treat. Case: Pharmaceutical Society of GB v Boots Cash Chemists Ltd)1952)  

2.  An advertisement is also an invitation to treat.  Exception:  unilateral advertisement.

Subject to contract

  If  the words 'subject to contract' are placed on top of a letter, they indicate that the offer is not to be legally binding (Walford v Miles (1992).  (Norman's comment:  similar result if such words have been communicated to the other party).