Offer

In one sentence

A proposal to enter into a binding agreement on specific terms.

Plain English

An offer is when one person proposes to do something or give something to another person, with the clear intention that accepting the proposal will create a binding contract. The offer must be definite enough that both parties understand what's being promised. Once someone accepts a valid offer, a contract is formed and both parties have legal obligations. An offer can be made to one person, a group, or even the general public.

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Example

Sarah emails a local contractor and says, "I'll pay you $5,000 to paint my house by next Friday." This is an offer because Sarah has made a clear proposal with specific terms. If the contractor replies "I accept," a contract is formed and both are legally bound.

Used in a sentence

“The seller's offer to sell the car for $15,000 was rejected by the buyer, who made a counteroffer instead.”

Related terms

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

Consideration

Something of value exchanged by each party to make a contract binding.

Offeror

The person who makes an offer to enter into a contract.

Offeree

The person who receives an offer and has the power to accept or reject it.

Unilateral Contract

A contract where only one party makes a binding promise in exchange for the other's performance.

Form Contract

A standardized contract with pre-written terms that one party offers on a take-it-or-leave-it basis.

Mutual Assent

Both parties agree to the same contract terms at the same time.

Meeting of the Minds

Both parties share the same understanding of a contract's essential terms.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.