An office supply store mailed a flyer to local businesses advertising a special promotion on paper reams. The flyer stated: 'Paper reams on sale this week for $20 per box, while supplies last.' A business owner saw the flyer and drove to the store, intending to buy 10 boxes. On arrival, the owner discovered the store had sold out of paper. Is the store obligated to provide 10 boxes of paper to the business owner at the advertised price?
No, because the contract was not performed within a reasonable time.
No, because the flyer is an advertisement, which is generally considered an invitation to deal rather than a binding offer.
Yes, because the flyer constituted a clear offer that the business owner accepted by going to the store.
Yes, because an advertisement at a specified price creates a contractual obligation to fulfill orders.
The flyer distributed by the office supply store is considered an 'invitation to deal' rather than a binding offer. Under contract law, advertisements and promotional materials typically do not constitute offers because they lack specificity and, in many cases, are not intended to create immediate binding obligations. Instead, they are invitations to customers to make an offer by, for instance, going to the store or contacting the seller. The store had no obligation to deliver the specified number of boxes at the advertised price because the advertisement did not constitute a definite offer. Other answers are incorrect because they rely on a misunderstanding of the binding nature of advertisements or ignore the fact that a contract requires a clear offer and acceptance.
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What is the difference between an invitation to deal and a binding offer in contract law?
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