Question 1
An ad in the morning paper reads: "Brand new 2012 Ford Escorts $16 499. No payment until January 2012. We make your first payment." This is an example of which of the following?
◦ gratuitous promise
◦ invitation to treat
◦ bilateral contract
◦ offer
◦ unilateral contract
Question 2
Four days ago, Pete was reading the newspaper and saw the following: "Best offer in town! Zenith XX Laser Printer—$1000!" When he went to the store this afternoon and said he wanted one, the employees replied that they didn't have any left, nor could they get any. On these facts, which of the following is true?
◦ Pete could sue the store for breach of contract because he was accepting the offer in the newspaper.
◦ The store had revoked the offer before Pete tried to accept it.
◦ Pete could sue for breach of an option contract.
◦ The offer by the store had lapsed before Pete tried to accept it.
◦ The wording in the newspaper was merely an invitation to the public to do business, and no contract was formed.
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