Contract Law: Definition and Characteristics of an Offer

Questions and Answers

An offer

Clear, specific, and unambiguous, communicated, and capable of acceptance

Unilateral offer

Revocation, lapse of time, rejection, and death or incapacity Signup and view all the answers

A response to an offer that proposes different terms Signup and view all the answers

Advertisements are considered invitations to treat Signup and view all the answers

When it is clear, specific, and leaves no room for negotiation Signup and view all the answers

It is terminated and becomes a new offer Signup and view all the answers

Study Notes

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

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

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

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

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

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

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

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

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

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