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Q: An advertisement appeared in the Chicago Sun-Times for the sale of a Volvo station wagon at Lee Calan Imports,?
An advertisement appeared in the Chicago Sun-Times for the sale of a Volvo station wagon at Lee Calan Imports, Inc., for $1,095. The advertisement had been misprinted by the Sun-Times. The actual price of the automobile was $1,795. O’Keefe showed up at Lee Calan and said he would buy the Volvo for $1,095. Lee Calan refused to sell the car for $1,095. O’Keefe sued, claiming that the advertisement was an offer that he accepted, creating a binding agreement. Was O’Keefe correct? Explain.

A: While O’Keefe is out some value for his time and his travel, no consideration passed between O’Keefe and Lee Calan therefore a binding agreement was not created.

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