I'm posting this here because it is a legal issue, but feel free to move it to the Marketplace, or make it a sticky, or whatever.
I recently had someone get "pissy" when I sold something to someone and not to him, even though he had not agreed to buy the item. I teach Business Law, and I think that a synopsis of the laws in this regard may help people out.
To have a legally binding contract there must be an "agreement", which consists of an offer, and an acceptance.
An advertisement is generally NOT considered to be an offer to sell. It is considered to be an invitation for offers. If an item is listed with a price, "I'll take it" does not generally constitute a binding contract for sale.
There are many reasons for this, including the fact that it could be sold somewhere else. Likewise, if an ad was considered an offer to sell, then multiple people could "accept" that offer. Thus, the ad is considered an invitation for offers, and when someone says "I'll take it", that is actually the offer to buy, which legally may or may not be accepted by the seller.
BUT, I would say that if someone says "I'll take it", with no conditional terms, it is bad form and possibly poor ethics, to not attempt to sell the item to this person. Because of this, let's just assume for our purposes that the advertisment is an offer to sell and the seller should sell the item to the first person who "accepts" the offer to sell
The problem comes in primarily with what are considered "conditional acceptances". The following are examples of conditional acceptances, which are not really acceptances:
"I'll take it if you will ship it to Timbuktu for the same price",
"I'll take it for $X", when $X is less than the listing price.
"I'll take it if you take PayPal" or food stamps or anything other than cash money.
"I'll meet you and I'll take it if I like it".
These types of "conditional acceptances" are not legally acceptances at all. They are mere negotiations and discussions, or at best counter offers that may or may not be accepted by the seller.
In summary:
Legally, a person cannot respond to an ad and create a binding contract. The seller has to accept the offer to buy.
Ethically, a seller should accept the first unconditional offer to buy at the listed price for cash money.
A seller is not even ethically or morally bound to sell to someone who attempts to change the terms of the advertisement, or who makes any conditions whatsoever.
I recently had someone get "pissy" when I sold something to someone and not to him, even though he had not agreed to buy the item. I teach Business Law, and I think that a synopsis of the laws in this regard may help people out.
To have a legally binding contract there must be an "agreement", which consists of an offer, and an acceptance.
An advertisement is generally NOT considered to be an offer to sell. It is considered to be an invitation for offers. If an item is listed with a price, "I'll take it" does not generally constitute a binding contract for sale.
There are many reasons for this, including the fact that it could be sold somewhere else. Likewise, if an ad was considered an offer to sell, then multiple people could "accept" that offer. Thus, the ad is considered an invitation for offers, and when someone says "I'll take it", that is actually the offer to buy, which legally may or may not be accepted by the seller.
BUT, I would say that if someone says "I'll take it", with no conditional terms, it is bad form and possibly poor ethics, to not attempt to sell the item to this person. Because of this, let's just assume for our purposes that the advertisment is an offer to sell and the seller should sell the item to the first person who "accepts" the offer to sell
The problem comes in primarily with what are considered "conditional acceptances". The following are examples of conditional acceptances, which are not really acceptances:
"I'll take it if you will ship it to Timbuktu for the same price",
"I'll take it for $X", when $X is less than the listing price.
"I'll take it if you take PayPal" or food stamps or anything other than cash money.
"I'll meet you and I'll take it if I like it".
These types of "conditional acceptances" are not legally acceptances at all. They are mere negotiations and discussions, or at best counter offers that may or may not be accepted by the seller.
In summary:
Legally, a person cannot respond to an ad and create a binding contract. The seller has to accept the offer to buy.
Ethically, a seller should accept the first unconditional offer to buy at the listed price for cash money.
A seller is not even ethically or morally bound to sell to someone who attempts to change the terms of the advertisement, or who makes any conditions whatsoever.
