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Breach of Contract in Advertising

Question: Assignment: Breach of Contract in Advertising This assignment is due by the end of the 5th day of the module. Introduction Hot Coffee (a fictional Florida corporation) sends out a flyer to all of the homes in the local neighborhood with the following: “Show up before 9:00 am on January 15th and we will give you the best deal on our collector’s edition coffee mugs!” John Doe shows up to Hot Coffee at 8:45am and demands to purchase a collector’s edition coffee mug for $2.00. The staff at Hot Coffee informed Mr. Doe that the price for the collector’s edition coffee mugs is $2.50. Mr. John Doe thought this was a breach of contract and that he was entitled to purchase the mug for $2.00 based on their advertisement. Assignment Instructions Address the following: Does this advertisement constitute a binding offer? Did Hot Coffee breach a contract with Mr. John Doe? Why or why not? Include relevant concepts and/or case law from your reading. Requirements The length of your response is conditional on the question. Answer fully, but concisely. Your submissions should be submitted via the assignment dropbox in .doc or .docx format, using 12 pt type and double spacing. Late submissions will not be accepted. For this course, unless otherwise noted by the instructor, submitting work late will be permitted only under qualifying circumstances and only with prior notification and supporting documentation (original funeral notice, original doctor’s note, etc.). Computer and Internet connectivity problems are not valid reasons for late work. It is the student's responsibility to be technologically prepared to take a blended course.

Business Law

This paper looks at the feasibility of the flyer issued by Hot Coffee being a binding offer and that the refusal to sell a mug to John Doe at 2.00 is a breach of contract. According to the contract law, an agreement that is legally binding must have a valid offer, acceptance, and consideration. Advertisements are, however, frequently taken as invitations to negotiate and not as offers. This discussion relies upon current scholarship in the area of contract theory and the definite case law to establish whether or not Hot Coffee entered into a binding contract with John Doe.

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