The Advertiser Schmepsi refused to give the reward saying that it was only an advertising gimmick and 'a bit of a joke' Michael wants to know if he has contractual rights against the Schmepsi for the $30 million worth of motor cycles.
According to Contract Law, an offer once accepted, it makes a binding contract between offeror and acceptor. In the above case actually the offeror is Michael and not Shemepsi for the following reasons. Generally advertisements are treated as not offers but an invitation to treat i.e. invitation to make an offer. What Schemepsi has done is only an invitation to treat by making an invitation to collect a certain number of coupons in exchange of a prize. Bold, unimaginable, and impractical orders are made in the form of advertisements deliberately to attract attention and not to really be bound by them. Who ever notices such advertisements should not be carried away by them and not make serious commitments based on them as they could always be avoided by the advertisers on the plea that they were only invitation to treat (invitation to bargain in" U.S") (invitation to offer in "India")
"An inv ...Show more