The Offer

Define the term "offer" and identify the ingredients of an offer. Discuss fully.

The Restatement of Contracts 2nd §24 defines an offer as “The outward manifestation of a willingness to enter into a bargain, so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it.” [1] My understanding of the language in §24 is that an offer is a party’s communication of the intent to enter into a binding agreement which is governed by the terms specified, and the communication is meant to induce the offeree to accept the stated terms to establish a contract.

The ingredients of the offer must communicate terms which are certain and definite. [2] This makes it possible for parties to the contract, as well as fact finders to be able to determine whether a breach has occurred and what remedies may be appropriate in the event of a breach. [3] To be considered an offer, the communication must also include a “promise, undertaking or a commitment” by the offeror which shows the offeror’s intent to enter into a contract. [4] The offer must also be communicated to the offeree by the offeror. [5]

[1] Steven J. Burton, Contract Law 169 (2014).

[2] Id. at 172

[3] Id.

[4] Barbri, First Year Outlines, Contract and Sales 4 (2015).

[5] Id. at 8.

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