Pepsico: Commercial jet was not an offer because it referred to the catalog, and the jet was not in the catalog. Furthermore, it was not reasonable to assume the jet offer was for real.•harrier jet, reasonableness of offer•specified mode of acceptance was not possible to comply with because jet was not in the catalogueowasn’t possible to comply with the termsWhy is it ok for Pepsi to make a joke but Zehmer can’t.•commercial tone was clearly unrealistic as opposed to zehmer who drafted a written agreement and had his wife sign it•zehmer – the price wasn’t wildly off the way buying a jet with Pepsi points is (although harrier jet is nota commonly known good so in this case might not be as strong as argument, but generally its good)people have many motives for making offers, so imbalance (not total meeting of the minds is not evidence enough)Policy: Courts are reluctant to treat advertisements as offers because that would chill advertising, stores would have to make them dull and info laden. ACCEPTANCE OF AN OFFERPromisor/promisee•A counteroffer, like rejection of an offer, terminates the outstanding offer, i.e., offeree no longer has power of acceptance.•Mirror Image Rule: You can accept only the offer that was made. Changing material terms and/or insistingon new terms in your acceptance may amount to a counteroffer, which will terminate your right of acceptance with respect to the last offer.•Offeror may specify manner of acceptance, but defaults apply (see Restatement § 32). Most offers are accepted by promise. “Unilateral contracts” are offers which invite acceptance by performance and not promise. In rare cases, silence or other conduct may be treated as acceptance. •Where an offer invites acceptance only through promise (and not through some act), acceptance is usuallynot effective until offeror receives notice.•Where an offer invites acceptance through performance, the offer will be construed as open for a reasonable time.•Where acceptance may be through either performance or promise, the beginning of performance constitutes acceptance.Ways to accept offer14
•reciprocal promise (communication)•performance (unilateral contract)•silence, possibly acceptance depends on noticeHendricks v. Behee: The offeror must know of the acceptance for there to be a binding contract.