offerors

An offeror is the person or entity who makes an offer to enter into a contract. In contract law, the offeror outlines the proposed terms and conditions that would govern the agreement. The offeree is the party to whom the offer is directed and who may accept, reject, or counter the terms.

For an offer to be effective, it must reflect the offeror’s intent to be bound if the terms are accepted, be sufficiently definite, and be communicated to the offeree. An acceptance creates a binding contract, provided the terms are accepted in the manner required and, in general, the acceptance corresponds to the offer.

An offer can be revoked by the offeror before acceptance, and revocation must be communicated to the offeree. Offers can also lapse after a specified time or after a reasonable period. The death, insanity, or insolvency of the offeror typically terminates the offer.

In commercial and procurement contexts, the term is commonly used to describe a supplier or contractor who submits a bid or proposal in response to a solicitation. The act of submitting the bid makes the respondent an offeror for the purposes of the procurement process. Special rules may apply to irrevocable offers, such as firm offers under the Uniform Commercial Code or explicit option contracts requiring consideration.

Practical guidance includes drafting offers with clear terms on price, quantity, delivery, and duration, and ensuring that acceptance is communicated through the designated channel to avoid disputes.