Contract Law: Definition and Characteristics of an Offer

Definition of an Offer

• An offer is a proposal made by one party to another, indicating a willingness to enter into a contract
• It is an essential element of a contract, as it sets out the terms of the agreement

Characteristics of an Offer

• Clear and specific: The offer must be clear, specific, and unambiguous
• Communicated: The offer must be communicated to the offeree (the person to whom the offer is made)
• Intention to be bound: The offeror (the person making the offer) must intend to be bound by the offer
• Capable of acceptance: The offer must be capable of acceptance by the offeree

Types of Offers

• Unilateral offer: An offer that can be accepted by the offeree without communicating their acceptance to the offeror
  • Example: A reward poster for the return of a lost item
• Bilateral offer: An offer that requires the offeree to communicate their acceptance to the offeror
  • Example: A job offer that requires the applicant to accept the offer in writing

Termination of an Offer

• Revocation: An offer can be revoked by the offeror at any time before acceptance
• Lapse of time: An offer can lapse if a reasonable time has passed without acceptance
• Rejection: An offer can be terminated by the offeree's rejection of the offer
• Death or incapacity: An offer can be terminated by the death or incapacity of the offeror or offeree

Counter-Offers

• Definition: A counter-offer is a response to an offer that proposes different terms
• Effect: A counter-offer terminates the original offer and becomes a new offer

Advertisement as an Offer

• General rule: An advertisement is generally considered an invitation to treat, rather than an offer
• Exception: An advertisement can be considered an offer if it is clear, specific, and leaves no room for negotiation

Definition and Characteristics of an Offer

• An offer is a proposal made by one party to another, indicating a willingness to enter into a contract
• Essential element of a contract, setting out the terms of the agreement
• Must be clear and specific, communicated to the offeree, and show an intention to be bound
• Must also be capable of acceptance by the offeree

Types of Offers

Unilateral Offers

• Can be accepted by the offeree without communicating their acceptance to the offeror
• Example: A reward poster for the return of a lost item

Bilateral Offers

• Require the offeree to communicate their acceptance to the offeror
• Example: A job offer that requires the applicant to accept the offer in writing

Termination of an Offer

• Revocation: An offer can be revoked by the offeror at any time before acceptance
• Lapse of time: An offer can lapse if a reasonable time has passed without acceptance
• Rejection: An offer can be terminated by the offeree's rejection of the offer
• Death or incapacity: An offer can be terminated by the death or incapacity of the offeror or offeree

Counter-Offers

• A counter-offer is a response to an offer that proposes different terms
• Terminate the original offer and become a new offer

Advertisement as an Offer

• Generally considered an invitation to treat, rather than an offer
• Exception: Can be considered an offer if clear, specific, and leaving no room for negotiation