User:SpesAlitAgricolam/Offer and acceptance

In line with the definition from Treitel above, to invite acceptance an offer must be serious. In this sense, an obvious joke cannot become the basis of an offer because the potential offeror lacks actual intent to enter into an exchange. For instance, in the famous case of Leonard v. Pepsico, Inc., depiction of a military aircraft offered in exchange for "Pepsi Points" was interpreted by a court as a joke. Despite having clear terms (7,000,000 Pepsi Points in exchange for one aircraft), the humorous elements of the commercial rendered that portion of the advertisement a joke rather than a serious offer.

Whether a potential offer is serious is evaluated under an objective standard, independent of the subjective intent of the one making or accepting the offer. In the case of Lucy v. Zehmer, what one party believed were jests about selling a farm turned into a binding contract, based on the court's evaluation of the circumstance from the perspective of a reasonable observer. Similarly, in the case of Berry v. Gulf Coast Wings Inc., one party's offer of a "Toyota" for the winner of a contest was interpreted as requiring the offeror to provide a vehicle to the winner rather than a "Toy Yoda" doll from Star Wars, despite the assertion that the contest was based on a joke.