Contracts
A valid contract must meet the four following criteria in order to create and establish a contract. The first element would be that the contract has to be an agreement between to separate parties, whether business or personal. The second element would have to be supported legally. The third would mean the parties are able to be under contract with each other. The fourth is that they must have a lawful objective. Contracts are legally enforceable by either party.
When two parties intend to enter into a contract with each other it is determined by using the objective theory of contracts. This means that that the person that is viewing the situation is reasonable and able to make the decision that the two parties made the decision to be legally bond by the contract.
The court held that there was not a valid agreement here because there is no way that a Harrier Jet would have sold for $700,000 and a few Pepsi points. It is not a logical and reasonable contract between two parties when the actual jet sells for $23 million dollars.
Advertisements are considered for the sale of goods. They are merely done to get consumers to buy a specific product. The reason they are not considered offers because prices are constantly changing and it is to protect sellers from unnecessary breach of contract for nonperformance. The only time that an advertisement is when the price is definite and specific like listing a nice car price on TV.
References
Cheeseman, H. R. (2006). Contemporary Business and Online Commerce Law 5th Edition. Upper Saddle River, New Jersey: Pearson Prentice Hall
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