Legal Question in Business Law in Illinois

Coupon Possession

When a company hands out coupons to customers, is the coupon still that companies property or does the customer acquire full rights to the coupon?


Asked on 4/05/04, 3:24 pm

1 Answer from Attorneys

John Pembroke John J. Pembroke & Associates LLC

Re: Coupon Possession

A coupon is a unilateral contract, for purposes of analyzing legal rights. For so long as the "offer" spelled out in the coupon is outstanding, the public can accept the offer by performing in accordance with the terms of the coupon. This usually requires, among other things, purchase of a particular product or service at an outlet that "honors" the coupon, and is willing to grant the discount in price in exchange for the product or service being purchased, and the payment promised by the issuer of the coupon.

The physical paper representing the "offer", the coupon, has no intrinsic value, but belongs to the person in lawful possession of the document. IF the coupon were stolen, improperly duplicated, altered, or otherwise handled in a manner not intended by the issuer, there may be a defense to honoring the "offer". Many coupons, but not all of them, require that as part of the performance of the offer, an original coupon be presented at the point of purchase.

Because each coupon is an offer, I can't answer further without actually reading the coupon in question. In addition to the text, general contract priciples will also apply to determine "rights" under a coupon, and to a coupon. Hopefully, the above was helpful.

Our comments are based on treating your question as a hypothetical. Accordingly, our comments could be substantially and materially different were we advised of all of the relevant facts and circumstances. Our comments are by necessity general in nature, and should not be relied upon in taking or forgoing action in your circumstances without retaining an attorney. In order to fully explore your legal matter, you should meet with us or another attorney and bring to any such meeting all relevant documents and correspondence, and any other relevant facts.

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As you are aware, in Illinois there are various deadlines for filing a complaint, filing an answer to a complaint, or taking other action in order to preserve your legal rights, and avoid a complete loss of those rights. You should retain counsel immediately in order to be fully advised of your rights, and to be fully informed of the applicable time period within which those rights must be asserted. If you were to delay in doing so, it might result in your potential cause of action being forever barred.

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Answered on 4/05/04, 6:13 pm


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