brohaters1 wrote:Contracts Set 5, Question 8 of 36 (#9966) (Set5 Question 29)
I thought the answer was C (the ad was an offer). Here is the relevant notes from the lecture:
® Advertisements or price quotations generally are not offers
} -unilateral offer if in nature of award
} -ad specifies quantity and expressly indicates who can accept (1 fur coat $10, first come first serve)
-price quotation can be an offer if sent in response to an inquiry
Is the reason the answer was B (the ad was not an offer, and therefore the retailer's response was not an acceptance but an offer) because the ad didn't specify the exact quantity or expressly who could accept? It only stated $3000 per hundred and didn't talk about exactly who could accept in the trade journal ad (although it would be weird, at least in this context, to talk about exactly who could accept)?
That's right. Virtually any ad is going to be considered an invitation to make offers rather than an offer itself. One exception, as you mentioned, is the "first come, first served" exception. That comes from the Lefkowitz case
, which you may have studied in 1L Contracts. Take a quick look at the case if you're not familiar, because any question about that exception will probably more or less mirror the facts of that case. The other exception is when a merchant sends an ad directly to another merchant with very specific terms. Basically, the ad has to make it sound like the offer was being made to that guy specifically
as opposed to just everybody. If I run across a question that contains one of those provisions, I'll try to remember to post it here.
Here, the ad was in a trade journal, so it wasn't addressed to anyone in particular, and it didn't contain any sort of "first come, first served" language, so it wasn't an offer.