LEONARD VS. PEPSI
In general, the valid elements of a valid and enforceable contract are (1) offer, (2) acceptance, (3) specificity, and (4) meeting of the minds. The Honorable Mayor's plan is extremely dangerous because it could very conceivably be interpreted as an enforceable contract to auction the town on Ebay. In principle, placing the town for auction on Ebay would satisfy all of the elements of a valid contract susceptible to a demand for specific performance in the event of a winning bid by a specific bidder who complies with the applicable rules established by Ebay.
That is because the objective theory of contracts holds that the validity of contractual agreements is not determined by what is actually (or subjectively) in the respective minds of the parties involved; rather, contractual validity is determined by the reasonable (i.e. objective) interpretation of the external circumstances, acts, and statements of the parties involved in negotiations....
That doctrine applies directly to the Honorable Mayor's plan because the objective interpretation of actually following the procedures necessary to list anything (including a town) on Ebay are subject to reasonable objective interpretation by other parties that would be sufficient to justify their actual reliance on the apparent objectively reasonable interpretation of that act as creating an enforceable offer capable of being accepted according to the ordinary auction rules of Ebay.
Ordinarily, mere advertisements do not constitute valid offers that can be accepted by any person because advertisements are generally understood to be only offers to negotiate or to consider a purchase that might otherwise not have been considered by the entire population of those who may become aware of the advertisement. That is because it is understood that inventory is not necessarily unlimited and that advertisers may not be capable of satisfying every person who…
