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In: Operations Management

Should an advertisement be treated as an offer rather than an invitation to make an offer?...

Should an advertisement be treated as an offer rather than an invitation to make an offer? Why or why not?

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Expert Solution

An advertisement should not be treated as an offer; it should only be treated as an invitation to make an offer because it invites other parties to make an offer or proposal.

An offer, if accepted, it becomes a contract between both parties and it is legally binding. The other compulsory features of offer are that it must be definite and complete in all respects and it must be communicated to all the parties. While an advertisement is like an invitation to offer because it invites other parties to make an offer or proposal and it is not legally binding as it is not a contract between the parties. An invitation to offer becomes an offer when accepted by the party for whom it is made. If an advertisement is treated as an offer rather than an invitation to offer; the client will be assumed self-agreed to an offer but if an advertisement is not treated as an offer; it is only treated as an invitation to make an offer then it protects the client from becoming self-agreed into a contract.


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