Ads As Offers Flashcards
Restatement Second of Contracts § 33
ADVERTISEMENTS
Advertisements do not generally constitute offers due to the incompleteness of terms”
Leonard v. Pepsico Inc
Major Topical Rule
“Advertisements are understood to be mere requests to consider and examine and negotiation; no one can reasonably regard them as otherwise unless the circumstances are exceptional and the words used are very plain and clear.”
Kearney v. Equilon Enterprises LLC
Test
An advertisement can constitute an offer if its terms are
(1) clear,
(2) definite, and
(3) explicit,
and the offeree (4) reasonably might have concluded that acceptance would form a contract.
Types of special ads that become contracts
Generally
- Offer of a reward ex. the first person to do xx gets xx
- Ads that are clear, definite, and explicit so that nothing is open for negotation
Lefkowitz v. Great Minneapolis Surplus Store
If an advertisements is “clear, definite, and explicit and leaves nothing open for negotiation” it constitutes an offer that can be accepted.
Very similiar term requirements to Kearny
Carlill v. Carbolic Smoke Ball Company
A general advertisement of an award constitutes an offer that is capable of being accepted and binding the offeror in a valid contract, provided at least contemporaneous notice and some consideration are present.
Old British Case