Book Opener

INVITATION TONEGOTIATEVery often invitationsto negotiate are confusedwith genuineoffers. Is a price tagon a sale item anoffer or an invitationto negotiate?The advertisement in Example 3 was merely an invitation to thepublic to come in, see the lamps, and make an offer. When Carole said,“I would like to buy a Lava Lamp,” she was actually making an offerto buy at the advertised price of $49.98. The storeowner is free toaccept or reject the offer.There are exceptions to this rule. The courts consider some advertisementsas offers when they contain specific promises, use phrasessuch as “first come, first served,” or limit the number of items that willbe sold. In such cases, under the terms of the advertisement, the numberof people who can buy the product becomes limited, making theadvertisement an offer rather than an invitation to negotiate.Price tags, signs in store windows and on counters, and pricesmarked on merchandise are treated as invitations to negotiate ratherthan as offers. This rule of law probably stems from days when peoplenegotiated for products more than they do today.Definiteness and CertaintyAn offer must be definite and certain to be enforceable. A landlordof an apartment with faulty plumbing might agree to pay “a share” ofthe cost if the tenant fixes the plumbing, but the court would notenforce the contract because it was not possible to determine what theparties meant by “a share.”Example 4. Joe Vasquez was offered a position as an accountexecutive with the International Corporation at a salary ofChapter 5: How Contracts Arise 115