Contracts and Sales Multistate Bar Practice Exam

What is required for a catalogue to be considered an offer?

1. A specific inquiry must precede the price quotation

2. It must include terms that are negotiable

3. The catalogue must have a clear acceptance clause

4. The prices must be competitive

The correct answer is: A specific inquiry must precede the price quotation

For a catalogue to be considered an offer, it must contain specific elements that demonstrate an intent to enter into a binding agreement upon acceptance. A specific inquiry that precedes the price quotation indicates that the seller is ready to engage in negotiations that could lead to a contract. This clarity is essential because it demonstrates that the catalogue is not merely an invitation to treat or an advertisement, but rather a concrete proposal ready for acceptance once the inquiry is made. In many legal interpretations, if a catalogue presents terms and conditions in response to an inquiry, it solidifies the selling party's intention to be bound by those terms if the buyer accepts them. This is distinct from mere advertising or promotional materials, which typically do not convey binding offers until explicitly negotiated upon request. Thus, the presence of a specific inquiry signals that the catalogue can transition into a firm offer contingent on the inquiry's response.