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Legal Definitions - Offer
Definition of Offer
In legal terms, an Offer is a clear and definite proposal made by one party to another, expressing a willingness to enter into an agreement. It must contain specific terms and be communicated in a way that would lead a reasonable person to understand that accepting it would create a legally binding commitment. Essentially, it's a statement of readiness to be bound if the other party agrees to the proposed terms.
Here are some examples to illustrate the concept of an Offer:
- Example 1: Service Contract
A homeowner, Sarah, calls a local landscaping company, "Green Thumb Gardens," to inquire about having her backyard redesigned. The owner, Mark, visits her property, assesses the work, and then sends her an email stating, "We propose to redesign your backyard, including installing new flower beds, laying a patio, and planting three trees, all for a total cost of $7,500. This offer is valid for 30 days."
Mark's email is an offer because it clearly proposes specific services (redesigning the backyard, installing beds, patio, trees) in exchange for a definite price ($7,500). The statement "This offer is valid for 30 days" indicates his willingness to be bound if Sarah accepts within that timeframe, making it reasonable for Sarah to believe that her acceptance would create a contract.
- Example 2: Sale of Goods
A small business owner, David, wants to sell his used commercial espresso machine. He posts an advertisement online stating, "For Sale: Commercial Espresso Machine, excellent condition, $2,000. First serious buyer to agree to the price and pick up by Friday gets it." A potential buyer, Emily, emails him saying, "I accept your offer to buy the espresso machine for $2,000 and can pick it up on Thursday."
David's advertisement, specifically the part about the price and the condition for sale, constitutes an offer. It clearly outlines what he is willing to do (sell the machine) and what he expects in return (payment of $2,000 and pickup by Friday). Emily's response directly accepts these terms, demonstrating that a reasonable person would understand David's statement as a proposal intended to create a binding agreement upon acceptance.
- Example 3: Lease Agreement
A property management company sends a prospective tenant, Maria, a document titled "Lease Proposal." The document details the address of an apartment, the monthly rent of $1,500, the duration of the lease (12 months), and the move-in date. It concludes with a line for Maria's signature to indicate acceptance.
The "Lease Proposal" from the property management company is an offer. It clearly specifies the terms of the agreement – the apartment, the rent, the lease duration, and the move-in date – and indicates that by signing, Maria would be agreeing to these terms. This level of detail and the request for a signature make it clear that the company intends to be legally bound if Maria accepts the proposed conditions.
Simple Definition
An offer is a clear promise made by one party to another, proposing to do or refrain from doing something in exchange for a specific action or promise. It must be communicated in a way that would lead a reasonable person to believe that accepting it would create a legally binding contract.