Question

Bernie and Phil's Great American Surplus store placed an ad in the Sunday Times stating, "Next Saturday at 8:00 A.M. sharp 3 brand new mink coats worth $5,000 each will be sold for $500 each! First come, First served." Marsha LufMin was first in line when the store opened and went directly to the coat department, but the coats identified in the ad were not available for sale. She identified herself to the manager and pointed out that she was first in line in conformity with the store's advertised offer and that she was ready to pay the $500 price set forth in the store's offer. The manager responded that a newspaper ad is just an invitation to negotiate and that the store decided to withdraw "the mink coat promotion." Review the text on unilateral contracts in Section 12(b) of Chapter 12. Decide.

Answer 1

In this situation, we are dealing with a unilateral contract. Marsha LufMin accepted the offer by being the first in line and ready to pay the $500 price. Therefore, the store should honor the advertised offer and sell the mink coats to Marsha LufMin at the specified price.

Step-by-step explanation:

In this situation, we are dealing with a unilateral contract. A unilateral contract is a contract in which one party makes an offer that can be accepted only by the performance of a particular act, as opposed to a promise. In this case, the advertisement in the Sunday Times stating the sale of mink coats for $500 each constituted an offer to the public.

Marsha LufMin was the first in line when the store opened and was ready to pay the $500 price stated in the offer. However, the manager's response that a newspaper ad is just an invitation to negotiate is incorrect. Advertising a specific offer, such as the sale of mink coats, creates a unilateral contract.

In a unilateral contract, acceptance is shown by the performance of the requested act. Marsha LufMin accepted the offer by being the first in line and ready to pay the $500 price. Therefore, the store should honor the advertised offer and sell the mink coats to Marsha LufMin at the specified price.