This lesson explores invitations to negotiate/preliminary negotiations and other statements and expressions that are not offers, including advertisements, invitations to bid, price quotations and statements of intention. Determining whether a particular communication is an offer or preliminary negotiation (a matter determined according to the surrounding circumstances) prior to the formation of contract is essential to the determination of whether a contract exists.
On completion of the lesson, the student will be able to:
1. Distinguish between an offer and a preliminary negotiation.
2. Determine when an advertisement is an offer.
3. Determine when price quotes and invitations to bargain are offers.
4. Explain what constitutes the offer and the acceptance at an auction.