In Late April, Harper Corp Placed an Advertisement in a Newspaper

question 38

Multiple Choice

In late April, Harper Corp placed an advertisement in a newspaper that said: "We cater parties. Up to 150 people for only $3000. No hidden fees or costs." The manager of Martin Inc telephoned Harper and left a voice message that said, "We are calling to place an order to have a party for 150 people on the first of June." The next day, the manager of Harper called Martin and explained that, due to a scheduling conflict, it could not stage a party on the first of June. Martin now says that a contract had been created and that Harper has breached that agreement. Which of the following statements is TRUE?

• A) A contract was created between the parties as soon as Martin left its message on Harper's answering machine, regardless of when Harper listened to that message.
• B) In classifying the nature and effect of Martin's telephone message, a judge would focus exclusively on the intention that Martin had at the time.
• C) Because an advertisement is presumed to be an invitation to treat, Martin's telephone message probably was not a contractual acceptance.
• D) If it did not actually have a scheduling conflict, Harper Corp would be obligated to satisfy Harper Inc's order.
• E) Because a contract cannot be created between corporations, Harper Corp cannot be held liable to Martin Inc.

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