offeror

An offeror is the party who makes an offer in contract law. The offeror expresses a willingness to enter into a contract on specific terms and invites the other party, the offeree, to accept those terms. For a contract to form, the offer must be communicated, the terms must be clear and definite, and there must be an intent to be bound upon acceptance. An offer is distinguished from an invitation to negotiate, a request for bids, or a price quote, which generally do not themselves constitute offers.

An offer can be bilateral or unilateral. In a bilateral offer, each party promises to perform; in a unilateral offer, the offeror promises to pay or grant a benefit in exchange for the offeree's performance. Acceptance completes the contract and creates obligations enforceable against the offeror.

An offer can be revoked at any time before acceptance, unless there is consideration to keep it open (an option contract) or, in certain commercial transactions, a merchant’s firm offer may be irrevocable for a stated period under applicable rules (such as the UCC in the United States). Once acceptance is communicated, the agreement is binding on the offeror and offeree according to its terms.

If the offer lapses, is rejected, or the offeror dies (where a valid contract cannot be formed), no contract arises. The term “offeror” is commonly used in common-law jurisdictions; civil-law systems may use different terminology, but the underlying concept remains the same: the party who presents the terms for agreement.