MAN, FIRST YEAR LAW SCHOOL CONTRACTS CLASS. PRICE TAGS. ARE THEY A UNILATER OR BILATERAL CONTRACT, BY RICHIE HECHTER, JD., MBA.

I was walking around the "West End" shopping district today. It's a very small area, with several restaurants and some odd retail stores. They also have a Polestar dealership which sells electric vehicles. I know nothing about this brand.

As I was walking by the showroom area and door, I saw this large notice/sign/alert which says $20,000.00 off for Tesla Owners. I thought this is gutsy to have on your main door. What does it actually mean? If I have a really old junky Tesla worth $15,000.00 at best, is the Polestar dealership telling me they will give me $20,000.00 off one of their cars - assumingly I trade in the Tesla. Is this because everyone seems to be hating on Musk?

Anyway, what we learned in contract law (first year class) is that signs and price tags are NOT binding contracts. They are invitations to make offers. Here is a law school definition of what price tags and signs really are:

Price signs like this are "invitations to treat" An invitation to treat is a preliminary communication in the negotiation process that invites offers from interested parties. It is not an offer in itself, but rather an expression of willingness to enter into negotiations or receive offers. The key characteristic of an invitation to treat is that it lacks the intention to be bound immediately upon acceptance. A price sign like Polestar has is legally: A statement or action that invites offers or further negotiations, without constituting a binding offer itself.”

I suppose the asterisk after the statement of offer likely explains this in detail. I did not go into the dealership. If I was in the market for an EV, I would consider a well branded vehicle such as Tesla or a GM EV. Signs do not constitute binding offers that have to be accepted by a seller.