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Posted: June 15th, 2022
Offers and Advertisements
Offers and Advertisements
Offers and Advertisements
In terms of legal definition and impact, how do we distinguish an advertisement from an offer?
Legally, an offer is defined as a promise whereby one party presents an intent to proceed to forming an agreement. With an offer, there is need for the contract to have definite and certain terms that will allow for the transaction to take place. An advertisement on the other hand, is an invitation to treat whereby one party welcomes the other to start negotiations with the intent of creating an offer. An example of an advertisement is a job application while an example of an offer may include the salary or benefits for an employee. The elements of an offer include lower degrees of specificity in agreements that are straightforward and not vague. When people go to supermarkets to shop, they find price tags labeled on items. These prices are an offer that people are able to understand as the requirement for owning the product.
2. Why do you think the distinction between an offer and an advertisement is significant? Please explain. Feel free to reference any case examples from your textbook.
Knowing the distinctions between an offer and an advertisement is important because people need to know the type of contract that binds the agreement. Some contracts are valid while others are voidable or void. Once a person differentiates offers and adverts, they are more likely to analyze a breach and evaluate their chances of winning a case. An offer should hold all the elements of a contract in a simplified manner. Involved parties should realise that once an agreement lacks certain elements such as price, the agreement is easily nullified. Also, advertisements can be revoked at any step as seen in the case of Gleason v. Freeman. The court ruled that online auctions are not contracts as they are invitations to treat and therefore non-binding advertisements.
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