MBE Rules · Contracts

Advertisements as offers

The rule

Advertisements are generally invitations to deal, not offers, because they lack a definite offeree. Exceptions: (1) ads that are specific as to quantity and method of acceptance ("first 10 buyers"), and (2) public reward offers.

In plain English

Ads usually invite people to make offers rather than being offers themselves, unless they specify exactly who can accept and how.

Worked example

A store ad says 'First 5 customers get a laptop for $100.' The first 5 people to show up can accept this as an offer, as it specifies quantity and acceptance method.

Memory hook

Adverts allure, offers are sure. Ads invite negotiations, but specifics can make them offers.

The trap

Students think: All ads are offers. Wrong, because ads lack specific offerees. The actual test is specificity and method of acceptance.

How examiners test it

The MBE loves: flashy ad promising a deal. Trap: assuming it's an offer. Look for specifics like 'first 10 buyers' to determine offer status.

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