JD Next Practice Exam

What type of offer is indicated by the phrase "First Come First Served"?

1. Invitation to Negotiate

2. Invitation to Tender

3. Firm Offer

4. Unilateral Offer

The correct answer is: Unilateral Offer

The phrase "First Come First Served" indicates a unilateral offer. In this context, a unilateral offer is one where only one party makes a promise or creates an obligation contingent upon action by another party. The offeror is expressing a willingness to enter into a contract if the offeree meets the specified condition, which is the first person to respond or take action receives the benefit (often a product or service). This type of offer is characterized by its clear terms — when someone performs the required action (like showing up first), the offeror is obligated to fulfill the promise. It creates an immediate contract upon acceptance, which does not require further negotiation or communication beyond the initial acceptance of the offer. The other types of offers mentioned cannot be correctly described with "First Come First Served." An invitation to negotiate is merely an encouragement to engage in discussions without any commitment. An invitation to tender typically involves formal bids for fulfilling a contract, often associated with public procurement. A firm offer, while it involves a promise, is generally not dependent on immediate action but rather remains open for a specified time. Therefore, the essence of the "First Come First Served" phrase aligns most accurately with a unilateral offer.