Understanding Offers in Contract Law

An offer is an expression of willingness to enter into a contract on certain terms. It may take the form of a proposal or bid made by one party with the intention of initiating negotiations with another. In general usage, an offer refers to any proposal put forward by one individual or group to another. Offers can be conditional, subject to approval or acceptance from another party.

Offers have different requirements depending on their type:

• Unilateral offers: These require only one action to make them binding. For example, if you say, "I'll give you $10 if you pick up this book," it becomes binding when you hand over the money without anyone having to agree to anything else.

• Bilateral offers: These involve two parties making promises to each other. They typically come in the form of formal contracts, which must be signed by both parties before they become binding.

The concept of an offer is fundamental in law, especially in contract law. Under common law jurisdictions, an offer creates no obligation until accepted by the offeree. Once accepted, the promise or agreement between the parties begins to exist. Additionally, under the Uniform Commercial Code, an offer exists when there is a serious commitment to sell goods or services, identified by a description sufficient according to its commercial requirements.