1. Sharon, a newly engaged woman, saw an advertisement in a bridal magazine for a beautiful pearl necklace priced at $69.99 from Precious Jewelry. She thought the necklace would be a wonderful present for her bridesmaids, so she ordered 5 necklaces from Precious Jewelry. After a few weeks, Sharon received a letter, along with her returned check from Precious Jewelry. The letter stated that the jeweler was sorry they could not fill her order because they had been overwhelmed with so many requests that their supply of necklaces ran out very quickly

Question Completion:

a. List the 3 elements of an offer and describe each (in your own words).

b. Did Precious Jewelry make an offer when they placed the ad in the magazine? Did Sharon make an offer when she placed the order? Why or why not?

c. What will be the likely outcome if Sharon sues Precious Jewelry to force them to fill her order? Explain your answer.

a. The three elements of a valid offer are Communication, Commitment, and Definite Terms.  Communication of an offer should be between the offeror and the offeree and not with the general public.  Commitment in an offer requires that the two parties are identified and are committed to the exchange of offer and acceptance.  Definite terms means that the terms of the offer must be clear and well-understood by the involved parties.

b. Precious Jewelry did not make an offer when it placed the ad in the magazine.  The ad was an invitation to offer.  Sharon was the party that made the offer when she ordered for the jewelries.  It was then left for Precious Jewelry to accept or reject the offer.

c. If Sharon sues Precious Jewelry to force them to fill her order, she does not have the locus standi because there is no basis for the existence of a contract between Sharon and Precious Jewelry since Sharon's offer was not accepted by Precious Jewelry and there was no consideration.

Explanation:

For a valid contract to exist between Sharon and Precious Jewelry, the five elements of a contract must be present.  They include valid offer, acceptance, mutual consent (or assent), consideration, and legality (including capacity).

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