🤝
Contracts • Contract Formation
K#015
Legal Definition
Advertisements are not offers, unless: (1) the offer is a reward (e.g., a unilateral contract); or (2) the offer expressly indicates who can accept a specific quantity.
Plain English Explanation
Exams love to test this. Advertisements may seem like they are offers, since they identify a specific product or service, and a price, and seem to encourage viewers to "accept" the offer by coming into the store, or calling. But ads are not offers, and there is a lot of case law to support this to the point that you can just accept it as an inevitable trick question on exams.
There are only two instances where an advertisement may qualify as an offer: (1) if there is a reward attached (if someone puts out an ad to help find their lost dog or a criminal, for example), and (2) if the advertisement specifies a quantity of items, and who may accept those items. For example, if Bob puts an ad in the paper that says, "Today we are selling all of our big screen TVs for $1, first come first serve!" this could be held as a binding offer. Note that in both of these examples, you basically have a unilateral contract, which is how courts often treat them, and the performance of someone showing up willing to purchase is sufficient to bind the offeror.
That being said, always remember that advertisements are generally and invitation to make an offer from those receiving the advertisement.
There are only two instances where an advertisement may qualify as an offer: (1) if there is a reward attached (if someone puts out an ad to help find their lost dog or a criminal, for example), and (2) if the advertisement specifies a quantity of items, and who may accept those items. For example, if Bob puts an ad in the paper that says, "Today we are selling all of our big screen TVs for $1, first come first serve!" this could be held as a binding offer. Note that in both of these examples, you basically have a unilateral contract, which is how courts often treat them, and the performance of someone showing up willing to purchase is sufficient to bind the offeror.
That being said, always remember that advertisements are generally and invitation to make an offer from those receiving the advertisement.
Hypothetical
See hypos in Simplified section
Visual Aids
Related Concepts
Are pre-existing duties valid consideration?
Though offers can generally be freely revoked, what are the 4 exceptions?
Under battle of the forms, what happens to additional terms in an acceptance between two merchants?
Under battle of the forms, what happens to different terms in an acceptance between two merchants?
What are consideration substitutes?
What are illusory promises and how do they affect a contract?
What are requirement and output contracts?
What are the methods of terminating an offer?
What are the UCC Gap Fillers?
What is an option contract?
What is promissory estoppel?
What is the effect of a conditional acceptance on an offer?
What is the effect of an offeree beginning to perform in response to an offer?
What is the Mailbox Rule and when does it apply?
When is past or moral consideration valid?
