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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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