Contract Offeror
A Contract Offeror is a Contract Party that initiates a contract proposal with specified terms and conditions inviting acceptance by another party (the offeree) to create a legally binding agreement.
- AKA: Contract Proposer.
- Context:
- It can be the initiator of contract formation, providing specific and definite terms that the offeree may accept, reject, or counter.
- It can define the content of the offer, outlining essential elements like payment, timeline, and services or goods exchanged, which are crucial for establishing a valid contract.
- It can have the right to revoke the offer before acceptance unless the offer specifies otherwise, such as in irrevocable offers.
- It can operate in various contexts, such as real estate, service agreements, or purchase contracts, where the initiating party is the offeror, setting initial terms.
- It can switch roles in negotiation; if the original offer is countered, the offeree may become the offeror by proposing new terms.
- …
- Example(s):
- In a real estate transaction, a buyer offering $250,000 for a property becomes the offeror, with the property owner as the offeree. If accepted, a binding contract is formed.
- In a service contract, a contractor proposing a specific service package to a client acts as the offeror. Once accepted, the contract terms are binding on both parties.
- …
- Counter-Example(s):
- A store displaying goods with price tags is not the offeror; the display is an invitation to treat, allowing the customer to make an offer to buy.
- An advertisement for a product is generally considered an invitation to treat, not a direct offer, leaving the seller with discretion to accept or reject purchase proposals.
- Contract Offeree,
- Third-party Beneficiary,
- Contract Arbitrator.
- See: Contract Law, Contract Offer and Acceptance, Invitation to Treat, Counteroffer, Revocation of Offer.
References
2024
- (ChatGPT-OpenAI, 2024) ⇒ Prompt: Summarize the concept Contract Offeror in 1- 2 paragraphs. ChatGPT (model:gpt-4o). Retrieved: 2024-10-26.
- QUOTE:The term "Contract Offeror" refers to the party in a contract negotiation who makes the initial proposal or offer to another party, known as the offeree. The offeror sets forth the contractual terms under which they are willing to enter into the contract, including stipulations like price, quantity, timelines, and any specific conditions that must be met. This proposal is the starting point for negotiations and must be clearly communicated to the offeree in a way that allows them to fully understand the contractual terms being offered. The contract offer represents the offeror's intent to be bound by those terms if accepted, thereby forming a legally enforceable agreement.
In legal terms, an offer is a critical component of contract formation, marking the first step in the process of creating a binding agreement. The offer must be distinct and communicated clearly since any ambiguity can render it invalid, leading to disputes or the need for further negotiations. Upon receiving an offer, the offeree has the option to accept, reject, or counter it, with acceptance resulting in a binding contract on its stated contractual terms. Until acceptance, the offeror retains the right to withdraw the offer, unless it is irrevocable under certain circumstances, such as when consideration has been provided to keep the offer open for a specified period. Understanding the role and responsibilities of the contract offeror is essential in ensuring clear, fair, and effective contractual arrangements.
- QUOTE:The term "Contract Offeror" refers to the party in a contract negotiation who makes the initial proposal or offer to another party, known as the offeree. The offeror sets forth the contractual terms under which they are willing to enter into the contract, including stipulations like price, quantity, timelines, and any specific conditions that must be met. This proposal is the starting point for negotiations and must be clearly communicated to the offeree in a way that allows them to fully understand the contractual terms being offered. The contract offer represents the offeror's intent to be bound by those terms if accepted, thereby forming a legally enforceable agreement.
2024b
- ([UpCounsel, 2024) ⇒ UpCounsel Content Team (2023). "What is an Offer in Contract Law?. In: UpCounsel. Last Updated on October 01, 2024.
- QUOTE: "An offeror provides clear terms and communicates intent, establishing the basis for a legally enforceable contract if accepted."
2023
- ([Cornell Law, 2023]) ⇒ Wex Definitions Team (2023). "Offeror". In: Legal Information Institute --Wex. Last updated in August of 2023
- QUOTE: Offeror refers to the person in a contract negotiation that makes an offer.