Ann receives an advertisement in the mail for Big Box’s special edition tablet computers for $500. Ann goes to Big Box’s store indicating her acceptance of the advertisement. Ann is informed that Big Box is sold out. Which of the following statements is true?
Multiple Choice
Big Box’s advertisement constituted an offer because it contained definite terms.
Big Box’s advertisement constituted an offer because it mailed the ad directly to Ann.
Big Box’s advertisement did not constitute an offer, but rather, it was an invitation for an offer.
Big Box’s advertisement constituted an offer because it expressed intent to contract.
Offer is an invitation communicated by one party to another to enter into legally binding contract.
An invitation to offer is an invitation to enter into negotiations to constitute an offer.
An advertisement can be either an offer or an invitation to offer based on the intentions of parties.
Here, the advertisement of big box is an invitation to offer because the advertisement neither said that the same will be sold to you. It does not create an binding obligation on the part of seller to sell the good to Ann.
So, Big Box’s advertisement did not constitute an offer, but rather, it was an invitation for an offer.
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