In: Operations Management
how do we distinguish an advertisement from an offer?
Generally advertisement is not considered an offer by legal systems. Even if the advertisement has the word “Offer” mentioned in it, the message on advertisement are usually one sided and unilateral in nature. However advertisements are invitation to customers making an offer.
For example, a TV ad announces that if you buy 10 Super Glue you will get 3 Super Glue free with it. This may sound like an offer but in fact this is an invitation so that customers go to the store and ask for 10 Super Glue. When the customer asks for the 10 Super Glue he/she may also ask for the 3 free Super Glue that is supposed to come with it. At that point, the customer makes an offer to the shopkeeper and the shopkeeper agrees.
Thus you see, advertisements that are seen in newspaper, TV, magazines, online media are never considered offers. They are merely invitation to the customers to make an offer to the advertisers. A valid offer becomes binding as soon as the offeree accepts it.