Craft v. Elder & Johnston Co.
Facts:
Defendants are Elder and Johnston Company
Plaintiff is Craft
Elder and Johnston placed ad in Dayton Shopping News for sale of electric sewing machines for $26 as a “Thursday Only Special”
Craft gave the defendants $26 on Thursday but they refused to fulfill their offer.
Value of machine was $175 and she asked damages of $149 plus interest
Procedure:
Trial court dismissed plaintiffs petition. Defendants Elder and Johnston Co win.
Issue:
Did the advertisement placed in the newspaper by Elder and Johnston Co. constitute an offer?
Rule:
“It is clear that in the absence of special circumstances an ordinary newspaper advertisement is not an offer, but is an offer to negotiate—an offer to receive offers—or, as it is sometimes called, an offer to chaffer.” Restatement of the Law of Contracts, Par. 25, Page 31.
Thus, if goods are advertised for sale at a certain price, it is not an offer and no contract is formed by the statement of an intending purchaser that he will take a specified quantity of the goods at that price…an advertisement is a mere invitation to enter into a bargain rather than an offer…
Holding:
“We are constrained to the view that the trial court committed no prejudicial error in dismissing plaintiff’s petition.”
Reasoning:
The advertisement did not constitute an offer, which may seem like a contract. Instead, it was merely an invitation to make an offer.
Disposition:
Judgment of trial court affirmed and costs adjudged against the plaintiff-appelant.