Offers

An offer is a proposal by one party to enter into a contract on specific terms, with the intention that assent by the other party will create a binding agreement. It is distinguished from a mere invitation to negotiate or an advertisement, which may not itself bind the promisor. In commerce, an offer may also refer to a stated price at which a seller is willing to sell goods or services.

In contract law, key elements of an offer are intention to create legal relations, certainty of terms, and communication to the offeree. The terms must be definite enough to form the basis of a contract. An offer can be made orally, in writing, or by conduct, and it remains capable of acceptance until it is revoked, rejected, lapsed, or otherwise terminated.

Acceptance must correspond to the terms of the offer (the mirror image rule) and must be communicated to the offeror, unless the offer calls for performance as the mode of acceptance. Once valid acceptance occurs, a contract is formed. Offers can be terminated by revocation (for example, the offeror withdraws the offer), rejection, a counteroffer, the lapse of time, destruction of subject matter, or the death or incapacity of either party.

Types of offers include bilateral offers (promises exchanged) and unilateral offers (performance is invited in exchange for a promise). An option contract keeps an offer open for a set period. Offers are often contrasted with invitations to treat, such as price displays or advertisements, which invite negotiations rather than promise definite obligations.

Beyond law, in markets and retail, offers appear as quotes, bids, or promotional deals. Employment processes may culminate in an offer letter detailing compensation, duties, conditions, and start date, which, if accepted, forms the employment contract.