Offeror§
Definition§
An Offeror is a person or entity that presents an offer to another party (the offeree) intending to create a legal contract. The offeror’s proposal details the terms under which they are willing to be bound in exchange for something of value. Once the offeree accepts this proposal, a legally enforceable contract is typically formed.
Examples§
- Sales Transactions: A business sends a quotation to a prospective buyer, proposing to sell goods at a specified price. Here, the business is the offeror.
- Employment Offers: A company offers a job to a candidate, specifying the salary, responsibilities, and other employment conditions.
- Real Estate Contracts: A buyer submits a written offer to purchase a piece of property from a seller at a specified amount.
Frequently Asked Questions§
What happens if the offeree makes a counteroffer?§
A counteroffer nullifies the original offer and puts a new offer on the table. The roles are reversed here, making the initial offeree the offeror.
Can an offer be revoked by the offeror?§
Yes, an offeror can generally revoke an offer any time before it is accepted unless it is an irrevocable offer, which includes options contracts or if consideration has been provided for holding the offer open for a specified period.
What constitutes a valid offer?§
A valid offer must be clear and definite, communicated to the offeree, and indicate the offeror’s intention to be bound upon acceptance of the offer.
Is there a time limit on how long an offer can stay open?§
An offer can include a specific time limit within which it must be accepted. Without such a limit, it remains open for a “reasonable time,” depending on the nature of the offer and the circumstances.
Related Terms§
- Offeree: The person or entity to whom the offer is made.
- Offer: A proposal indicating willingness to enter into a contract on specified terms.
- Acceptance: The offeree’s agreement to the terms of the offer.
- Consideration: Something of value that is exchanged between the parties in a contract.
- Counteroffer: A response to an initial offer, changing its terms and constituting a new offer.
Online References§
- Investopedia: Offeror
- Wikipedia: Offer and Acceptance
- Legal Information Institute: Offer and Acceptance
Suggested Books for Further Studies§
- “Contract Law for Dummies” by Scott J. Burnham
- “Principles of Contract Law” by Robert A. Hillman
- “Studies in Contract Law” by Ian R. Macneil & Richard E. Speidel
Fundamentals of Offeror: Business Law Basics Quiz§
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