Contracts and Sales Multistate Bar Practice Exam

When do courts usually view advertisements or catalogs as invitations to make an offer?

1. When they are targeted to specific individuals

2. When the terms are vague or broadly stated

3. When they contain clear offers to sell a product

4. When accompanied by detailed conditions of sale

The correct answer is: When the terms are vague or broadly stated

Courts typically view advertisements or catalogs as invitations to make an offer when the terms presented are vague or broadly stated. This perspective is grounded in the principle that an advertisement does not typically constitute a binding offer but rather invites potential buyers to make an offer to purchase. When advertisements use broad language without clearly defined terms, they signal to the public that they are not offering a specific contract but are open to negotiations. This approach allows for flexibility in sales, where the exact terms of the sale can still be established when a buyer makes an offer in response to the advertisement. For instance, if an advertisement states that an item is "available at a great price" without specifying quantity, price, or conditions for purchase, it invites interested parties to make an offer rather than committing to sell the item under defined terms. This is in contrast to advertisements that provide clear details, which may lean more towards constituting actual offers.