Question

Keith Avondale is in the market for a new “big screen” flat-panel television. While reviewing the Sunday newspaper, he notices a full-page advertisement from “Transistor Town.” The advertisement includes a 45-inch flat-panel television for $299. Surprised by the remarkably low price, and eager to purchase his new luxury item, Avondale makes plans to “open the store” on Monday morning. Avondale is the first customer to arrive at the store on Monday, waiting outside when the front doors open. He rushes into the store and announces to the first sales representative he sees, “I will take a 45-inch flat-panel television for $299!” The sales representative immediately refers Avondale to the store manager, who directs Avondale to his office. The store manager explains to Avondale that the advertisement was an unfortunate mistake, resulting from miscommunication between Transistor Town and the newspaper publisher. The manager goes on to say that the intended advertise price was $2,999, but that he would be willing to sell the described television to Avondale for $2,449, Transistor Town’s cost for the television. Avondale objects, demands that Transistor Town sell the television for $299, and informs the store manager that his brother is a trial lawyer. 1. What is the offer? 2. What is the acceptance? 3. What is the consideration? 4. Is this a valid contract? 5. Do both parties have contractual capacity? 6. Are there any contractual defenses? 7. If there are contractual defenses, what are the rebuttals to those defenses?

Answer 1

1. the offer is selling a 45 inches TV for $2449 by the showroom.

2. the acceptance is also for $2449 only, there is not third discussion about this.

3. the consideration is if you paid $2449 you will received a 45 inches television only

4. the given advertisement is a promotional tool does not carry any legal obligations. hence, the paper advetisement is not a valid contract

5. at the price of $299, the seller do not have capacity to offer the product even the buyer have interest to buy it

6. yes, the offerrer can defend himself by providing advertisement clip they provided to paper agency.

7. the court will be consider the request of showroom and accept the proposal