Contracts - Class 7: Advertisements

To be a valid offer...

the advertisement must sell a particular number of units or sell the items in a particular manner.

Like in Lefkowitz, where the man really wanted a mink coat

Restatement (Second) of Contracts states that generally an advertisement does not constitute an offer. However, if a newspaper ad is clear, definite, and explicit, and leaves nothing open for negotiation, it constitutes an offer, acceptance of which will complete the contract.

Reasonable time

The test for an offer's duration in the absence of an express or implied limitation. Additionally, and what is reasonable to the offeror rather than the offeree.

Leonard v. Pepsico:

Whether a television advertisement offering various rewards for purchase of their products counts redeeming those points for items featured on the commercial as a valid offer, whether on the basis of the advertisement itself or as a reward for purchase of their products, with added consideration of a filled out order form that does not explicitly offer the item requested. Restatement (Second) of the Contracts states that generally an advertisement does not constitute an offer. The exception being advertisements where there is a "clear, definite, and explicit [offer], and leaves nothing open for negotiation, in that circumstance, it constitutes an offer, acceptance of which will complete the contract," as found in the decision from Lefkowitz v. Great Minneapolis Surplus Store, 251 Minn. 188, 86 N.W.2d 689, 691 (1957). Only commercials that explicitly state the offer and the terms of the offer can count as a valid offer. This commercial was not explicit and further the item was not listed on the order form because any reasonable person would be able to see that the commercial was made in jest. The commercial only instructed the customer to refer to the catalog to see what items could be redeemed for points.

Central Investment Corp. v. Container Co

there was no binding contract in this particular instance because of the time restraints of the offer. CIC knew that there was a time crunch but deliberately withheld the written approval of the new offer. Because they waited almost three weeks to accept, and because that left only 10 days for Container to carry out the particulars, the contract cannot be considered binding.