BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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False
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True
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Detailed explanation-1: -Advertisements are typically an invitation to treat because they lack the important information that would make it an offer. There are circumstances where an advertisement would be an offer.
Detailed explanation-2: -Courts and scholars uniformly recite the contract law rule familiar to all first-year students: An advertisement is not an offer.
Detailed explanation-3: -An advertisement can either be an offer or an invitation to treat. However, it will be based on intention of parties.
Detailed explanation-4: -The generally accepted view is that an ad amounts only to an “invitation to treat”, the “offer” only occurring when the punter responds to the ad by entering the retail outlet, identifying the product he or she wants to buy and proffering the purchase price.