LawMeaning

Advertisement

Also known as: Ad

In one sentence

A public notice or display offering goods or services for sale.

Plain English

An advertisement is when a business publicly announces that it has products or services available. In contract law, an advertisement is generally not an offer to make a contract—it's an invitation for customers to make offers to buy. For example, a store's window display or a catalog showing prices is usually just inviting you to come in and propose a purchase, not a binding promise to sell at that price. The store can refuse your offer to buy, even if you show up with money.

Ad slot

Example

A grocery store advertises eggs at $2.99 per dozen in its weekly flyer. A customer comes in with the flyer and tries to buy 10 dozen at that price, but the store says it's out of eggs. The store's advertisement was not a binding offer, so the customer has no legal claim—it was just an invitation for customers to make offers.

Used in a sentence

“The company's advertisement in the newspaper was an invitation to treat, not a binding offer to sell the car.”

Related terms

Invitation to Treat
A display or communication inviting others to make an offer, not itself an offer.
Objective Theory of Contracts
The legal rule that contract meaning is based on what a reasonable person would understand, not secret thoughts.
Offer
A proposal to enter into a binding agreement on specific terms.
Acceptance
Agreeing to the exact terms of an offer, creating a binding contract.
UCC
The Uniform Commercial Code; a set of standardized laws governing sales of goods and commercial transactions.
Disclaimer of Warranties
A statement that removes or limits the automatic guarantees a seller would otherwise provide.
Consideration
Something of value exchanged by each party to make a contract binding.
Offeror
The person who makes an offer to enter into a contract.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.