Paralegal Exam Prep

Category - Contracts

"If you do not lose 10 pounds after using the new, revolutionary weight loss program, NuDietRite, we will pay you $50!" This statement is:
  1. A challenge.
  2. An invitation to deal.
  3. An offer.
  4. An advertisement.
  5. A, C, and D.
Explanation
Answer: E. This statement is a challenge, an offer, and an advertisement. The statement was likely made as part of an advertisement. Typically, an advertisement is nothing more than an invitation to deal. However, in cases where the wording of an advertisement is sufficiently definite and clear in its terms, it amounts to an offer that consumers are free to accept.
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