Hot Coffee (a fictional Florida corporation) sends out a flyer to all of the hom
ID: 1152497 • Letter: H
Question
Hot Coffee (a fictional Florida corporation) sends out a flyer to all of the homes in the local neighborhood with the following: “Show up before 9:00 am on January 15th and we will give you the best deal on our collector’s edition coffee mugs!” Does this advertisement constitute a binding offer? Why or why not? In your response, include relevant concepts and/or caselaw from your reading. The following resources can also help supplement your understanding of the topic:
Carlill v Carbolic Smoke Ball Co: https://en.wikipedia.org/wiki/Carlill_v_Carbolic_Smoke_Ball_Co
The Choice of a New Generation: Can an Advertisement Create a Binding Contract: https://scholarship.law.missouri.edu/cgi/viewcontent.cgi?referer=&httpsredir=1&article=3454&context=mlr
Contracts - Offer Made in Newspaper Advertisement: https://digitalcommons.law.lsu.edu/cgi/viewcontent.cgi?referer=https%3a%2f%2fwww.google.com%2f&httpsredir=1&article=2443&context=lalrev
Explanation / Answer
This advertisement constitutes a binding offer as this advertisement contains certain terms “to get a best deal” constituted a binding unilateral offer that could be accepted by anyone who performed its terms. The company is found to be bound by its advertisement, which is construed as an offer which the buyer, by Show up before 9:00 am on January 15th, creates a contract. Thus the fundamental elements of a contract are all present, including offer and acceptance, consideration and an intention to create legal relations. (Carlill v Carbolic Smoke Ball Company [1892])
And also due to the fact that the merchants who publicize their products/services by and large intend to deal according to the terms of their advertisements. For an advertisement to become an offer, it either has to include specific language which commits the advertiser to make an offer or language that invites a consumer to act without further communication between the parties, which is present in this particular case. (Leonard v. PepsiCo, Inc)
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