Question

Joel has an old lawnmower that is constantly breaking down. He decides to purchase a new one. He goes to the local hardware store. He finds a new model that he saw advertised in the newspaper. He pushes the lawnmower up to the cashier. She scans the price tag and tells him what he must pay. Joe hands the money to the cashier. In this fact situation an offer comes into existence when:

A) the cashier scans the price tag and tells Joel how much the mower costs.
B) Joel hands the money to the cashier.
C) Joel sees the price in the newspaper.
D) Joel sees the price of the mower in the store.
E) Joel takes the mower from the display area and heads to the front counter.

Answer 1

An offer in contract law is made when Joel, indicating his intent to purchase, takes the lawnmower from the display area and heads to the front counter. Seeing the price in the newspaper or at the store, and the cashier telling the price, are considered invitations to treat, not offers. The offer leads to a contract when Joel hands the money to the cashier.

Step-by-step explanation:

In contract law, an offer is a proposal by one party to another intended to create a legally binding agreement. In the scenario presented, an offer comes into existence at the moment a customer, Joel, takes an item with the intention of purchasing it. While seeing the price in the newspaper might inform Joel of the price, this does not constitute an offer. Similarly, when Joel sees the price in the store or when the cashier scans the item and tells him the cost, these actions are considered invitations to treat, rather than offers.

The offer is made when Joel takes the lawnmower from the display area and heads to the front counter, as this action indicates his intent to purchase the item at the advertised price, and he is presenting the cashier with his willingness to enter into a contract. When Joel hands over the money to the cashier, this is an acceptance of the store's implied offer to sell the mower at the displayed price, which then results in a contract. Therefore, the correct answer is E) Joel takes the mower from the display area and heads to the front counter.