Lee Calan Imports salesperson that he wanted to purchase the car for the advertised price of $1,095. Calan Imports refuses to sell the car to O’Brien for $1,095. Is there a contract? If so, for what price?

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Lee Calan Imports salesperson that he wanted to purchase the car for the advertised price of $1,095. Calan Imports refuses to sell the car to O’Brien for $1,095. Is there a contract? If so, for what price?

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Lee Calan Imports advertised a used Volvo station wagon for sale in the Chicago Sun-Times. As part of the information for the advertisement, Lee Calan Imports instructed the newspaper to print the price of the car as $1,795. However, due to a mistake made by the newspaper, without any fault on the part of Lee Calan Imports, the printed ad listed the price of the car as $1,095. After reading the ad and then examining the car, O’Brien told a Lee Calan Imports salesperson that he wanted to purchase the car for the advertised price of $1,095. Calan Imports refuses to sell the car to O’Brien for $1,095. Is there a contract? If so, for what price?

Explanation & AnswerSolution by a verified expert

Explanation

Reasons that advertisements are not offers:

They do not accommodate a promise.
Essential elements of making a contract are not expressed.

In this case, the newspaper made an error and misprinted the listed of price. So, it is easy and simple for Individual LC to prove themself innocent. No price may be set as there is no contract.

Verified Answer

No contract formed between Individual LC and Individual OB. There is a difference between an offer and an invitation to offer; a newspaper advertisement is an invitation to offer, not exactly an offer. There is no contract. So, there is not set price for the same.

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