April put an advertisement in the newspaper advertising the sale of her computer for $500. Simultaneously, six people responded to the ad by mail with formal written acceptances. April is bound on all six contracts to sell her computer for $500.

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Question restated: April placed a newspaper ad offering her computer for $500, and six people sent formal written acceptances. The statement to evaluate is whether April is bound on all six contracts to sell the computer for $500.

Option 1 (True): This would claim that April is bound on all six contracts. This is unlikely correct because, in contract law, a newspaper advertisement is generally considered an invitation to negotiate rather than a binding offer. Unless the ad contains clear, definite terms and indicates an intention to be bound upon acceptance (a rare reward-like scenario), it does not create six separate binding offers that can be accepted by anyone who responds. Even if each responder sent a valid acceptance, the advertisement typically cannot simultaneously form six enforceable contracts with every respondent.

Option 2 (False): This is the typical correct interpretation. An advertisement is usually an invitation to negotiate, not a binding offer to sell to everyone who responds. Even if multiple people accept, there would usually be only one sale unless the ad specifies exclusivity or creates a unilateral contract with a specific mechanism. The mailbox/dispatch rule might make an acceptance effective when mailed, but that does not transform the advertisement into six separate offers or bind April to all six contracts; there would need to be separate, valid offers to each acceptor that are not contradicted by the advertisement’s nature.

Why the other reasoning details matter: If the ad were an offer, multiple acceptances could create multiple contracts, but typical advertisements lack the specificity to create binding contracts with all respondents. The key misconception to avoid is treating an advertisement as a blanket contract with everyone who responds; instead, treat it as an invitation for offers, subject to acceptance, revocation, and the presence of a definite offer to specific parties.

In summary, the statement that April is bound on all six contracts is incorrect because standard advertisements do not constitute offers to sell to all readers; at most, one contract (or none) would arise depending on the terms and how acceptance is communicated, making the true answer False.

LEGAL & REGULATORY ENVIRONMENT FIN 2050-04 (90533) FINAL EXAM

April put an advertisement in the newspaper advertising the sale of her computer for $500. Simultaneously, six people responded to the ad by mail with formal written acceptances. April is bound on all six contracts to sell her computer for $500.

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Similar Questions

A key element of a valid offer is the intent : The offeror must genuinely intend to be legally bound if the offer is accepted.

Advertisements are often invitations to make an offer. In most cases, we are still at preliminary stage and therefore we are not in front of a valid offer.

An offer may be defined as a statement of willingness to contract on specified terms made with the intention that, if accepted, there will arise a binding contract.

Advertisements are often invitations to make an offer. In most cases, we are still at preliminary stage and therefore we are not in front of a valid offer.

An offer may be defined as a statement of willingness to contract on specified terms made with the intention that, if accepted, there will arise a binding contract.

When Olga asks Sven if he wishes to sell his Harley motorcycle, he replies that he would not sell it "for less than $2,000." Olga replies, "I accept," and hands him $2,000. A contract exists.

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