4 The following ad appeared in our local newspaper 1 black l

4. The following ad appeared in our local newspaper: “1 black lapin stole, beautiful, worth $139.50. $1. FIRST COME, FIRST SERVED”. You are the first to appear at the store and tender $1. Is a contract formed? Why or why not?

Solution

Yes, The contract is formed.

This comes under expcetion rule in Preliminary negotiations, advertisements, invitations to bid. In above case, the offer is clear, definite and explicit and nothing is left for negotiations. hence the acceptance of the offer completes the contract. The courts can enforce the seller to honour it.