What Is an Offer?
An offer is a clear proposal to enter into a contract on definite terms, made with the intent that it will become binding as soon as the other party accepts. It is the first essential step in contract formation: a valid offer, followed by acceptance and supported by consideration, creates an enforceable agreement. The person who makes the offer is the offeror; the person who can accept it is the offeree.
What Makes an Offer Valid
- Definite, essential terms — parties, subject matter, price, and quantity must be reasonably certain
- Intent to be bound — a serious proposal, not a joke, opinion, or negotiation opener
- Communication — the offer must be communicated to the offeree
An advertisement or price quote is usually treated as an invitation to negotiate rather than a binding offer, because it lacks the commitment and definite terms of a true offer.
How an Offer Ends
An offer can terminate by acceptance (forming a contract), rejection or a counteroffer (which rejects the original), revocation by the offeror before acceptance, lapse of a stated or reasonable time, or the death or incapacity of a party. In a Florida real estate transaction, these principles drive the back-and-forth of offers and counteroffers on the purchase contract.
Related Terms
- Acceptance — Agreeing to an offer to form a contract
- Consideration — The value exchanged that makes a contract binding
- Counteroffer — A response that rejects and replaces the offer
- Offeror — The party who makes the offer
Barnes Walker Real Estate
Barnes Walker's attorneys draft and review offers and contracts for Florida real estate and business transactions, making sure terms are clear and enforceable. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC