Who is offeror in contract law

Whoever makes an offer can revoke it as long as it hasn't yet been accepted. This means that if you make an offer and the other party wants some time to think it through, or makes a counteroffer with changed terms, you can revoke your original offer.

Once the other party accepts, however, you'll have a binding agreement. Revocation must happen before acceptance. An exception to this rule occurs if the parties agree that the offer will remain open for a stated period of time. An offer with an expiration date is called an option, and it usually doesn't come for free. You and the seller could agree that the offer will stay open for a certain period of time -- say, 30 days.

Often, however, the seller will ask you to pay for this day option -- which is understandable, because during the day option period, the seller can't sell to anyone else. Payment or no payment, when an option agreement exists, the offeror cannot revoke the offer until the time period ends.

Often, when an offer is made, the response will be to start bargaining. Of course, haggling over price is the most common type of negotiating that occurs in business situations. When one party responds to an offer by proposing something different, this proposal is called a "counteroffer.

You have not accepted his offer no contract has been formed but instead have made a counteroffer. Even though a contract is formed only if the accepting party agrees to all substantial terms of an offer, this doesn't mean you can rely on inconsequential differences to void a contract later.

For example, if you offer to buy chicken sandwiches on one-inch-thick sourdough bread, there is no contract if the other party replies that she will provide emu filets on rye bread. But if the other party agrees to provide the chicken sandwiches on one-inch-thick sourdough bread, a valid contract exists, and you can't later refuse to pay if the bread turns out to be a hair thicker or thinner than one inch.

In addition to both parties' agreement to the terms, a contract isn't valid unless both parties exchange something of value in anticipation of the completion of the contract.

The "thing of value" being exchanged -- which every law student who ever lived has been taught to call "consideration" -- is most often a promise to do something in the future, such as a promise to perform a certain job, or a promise to pay a fee for a job. For instance, let's return to the example of the print job. The main importance of requiring things of value to be exchanged is to differentiate a contract from a generous statement or a one-sided promise, neither of which are enforceable by law.

After she finds the dog, she calls John to let him know that she found his dog. A cross offer involves both parties in which one makes an offer to the other that is similar to what the other would have offered without realizing it.

This cross-offer situation requires one party to accept the other's offer. The final type of offer is a called an open or standing offer. This offer is continuous until it has been accepted. In order for an offer to be valid , it must be clearly communicated, giving the offeree a chance to accept or reject it.

Clear communication can include actions, oral communication, or in writing. A valid offer can be made to a group, a single person, or the public at large. Valid offers are definite in their substance. It must be distinguishable from an invitation to treat in order to be valid.

The differences between the two classifications are especially important in the revocation, communication of acceptance, and advertisements related to offers.

A bilateral offer has two sides, involving two parties who are contractually obligated to perform according to the terms and are equally committed. This is an objective, rather than subjective, standard for determining whether the intent to make an offer exists. Definite Terms - An offer to contract must be sufficiently definite. That is, the terms of the offer must be sufficiently specific to allow the offeree to understand and accept the offer. See also: Sum Certain The offeree must understand that she is the intended recipient of the offer and may accept it.

Also, the terms of consideration must be stated. Remember, the above elements do not have to be in writing or formal. Further, the parties do not have to realize that their words or actions constitute a valid contract; rather, each element is judged by an objective standard.

That is, how would a reasonable person perceive the actions potentially constituting an offer? How do you feel about the requirement that a contract meet this level of formality? Should it be more or less formal, and why? How do you feel about the fact that individuals can form a contract without fully realizing that their agreement is legally enforceable? Ashton is reading looking at the merchandise for sale on Smart Clothes Corps website. He places an order for a new shirt and goes through the process of setting up an account and attempting to pay.

At the end of the process, he gets notification that his purchase is discontinued and cannot be purchased. Ashton is furious and wants to sue Smart Clothes for breach of contract. If he does, what is the likely legal result in this situation? Written by Jason Gordon Updated at September 24th, Contact Us If you still have questions or prefer to get help directly from an agent, please submit a request. Please fill out the contact form below and we will reply as soon as possible.

Discussion Question How do you feel about the requirement that a contract meet this level of formality? Practice Question Ashton is reading looking at the merchandise for sale on Smart Clothes Corps website. An offer must have two specific characteristics.