Definition
In the realm of contract law, an “Offeree” is a person or party who receives an offer from another party, known as the offeror. The offeree holds the discretion to either accept or decline the offer. This interaction is a fundamental component of forming a legally binding contract. Acceptance of the offer by the offeree, under the specified conditions and within an acceptable time frame, leads to the establishment of a contractual agreement between the parties involved.
Examples
-
Employment Offer: Suppose a company offers a job to a candidate. The candidate, being the recipient of the offer, is the offeree. The candidate has the option to accept the job offer, negotiate the terms, or reject it.
-
Real Estate Transaction: In a real estate context, if a buyer presents an offer to purchase a house, the homeowner is the offeree. The homeowner can accept the buyer’s proposed purchase price, suggest a counteroffer with different terms, or entirely reject the proposal.
-
Service Agreement: A freelance graphic designer submits a proposal to a potential client detailing the scope of work and pricing. The potential client, as the offeree, can decide to accept the proposal, request modifications, or not proceed with the designer’s offer.
Frequently Asked Questions (FAQs)
What is the difference between an offeree and an offeror?
An offeror is the party that makes the offer, proposing terms and conditions for an agreement. The offeree is the party that receives the offer and holds the power to accept, reject, or negotiate the terms.
Can an offeree change the terms of the offer?
Yes, the offeree can propose a counteroffer, which essentially modifies the terms of the initial offer. However, a counteroffer is considered a rejection of the original offer and becomes a new offer, shifting the roles of offeror and offeree.
What happens if the offeree does not respond to the offer?
If the offeree does not respond within a reasonable or stipulated timeframe, the offer may lapse and become void, meaning it is no longer open for acceptance.
Can there be multiple offerees for a single offer?
Yes, an offeror can extend an offer to multiple offerees at the same time, for instance, when selling shares of stock or in a public auction.
Related Terms
- Offeror: The individual or entity that presents an offer to another party.
- Acceptance: The offeree’s manifestation of assent to the terms of an offer.
- Counteroffer: A response to an offer in which the offeree proposes different terms.
- Consideration: The benefit, interest, or value that induces a party to enter into a contract.
- Bilateral Contract: A contract involving mutual exchange of promises between two parties.
- Unilateral Contract: A contract in which one party makes a promise in exchange for the performance of an act by another party.
Online References
Suggested Books for Further Studies
- “Contract Law for Dummies” by Scott J. Burnham
- “Principles of Contract Law” by Robert A. Hillman
- “Understanding Contracts” by Jeffrey Ferriell
- “Contract Law: Principles and Context” by Andrew Stewart and Jeannie Paterson
Fundamentals of Offer and Acceptance: Contract Law Basics Quiz
Thank you for delving into the intricate details of contractual agreements. Enhance your understanding of contract law by exploring the recommended resources.
