Answer:
a. The three elements which make an offer valid are communication, commitment, and definite terms. The communication of an offer happens between the offeror and the offeree and not with the general public, as depicted by the ad. Commitment in an offer requires that Sharon and Precious Jewelry are identified as the involved parties and are committed to enter a valid contract. Definite terms require no ambiguity.
b. Precious Jewelry did not make an offer when it placed the ad in the magazine. The ad was an invitation to treat. Sharon initiated the offer when she ordered for the jewelries. At this point, Precious Jewelry could accept or reject the offer, depending on its capacity.
c. If Sharon sues Precious Jewelry to force it to fill her order, she does not have the good standing required to enforce specific performance of a contract because there is no basis for the existence of a contract between her and Precious Jewelry. Moreover, Sharon’s offer was never accepted by Precious Jewelry and there was no consideration.
Step-by-step explanation:
A valid contract will exist between Sharon and Precious Jewelry when the five elements of a contract are present. These include valid offer, acceptance, mutual consent (or assent), consideration, and legality (including the capacity of the contracting parties).