Learn It: Offer

The main requirements for a valid contract are:

Offer $-$ made by the offeror

Acceptance $-$ made by the offeree

Consideration $-$ what each party gives up under the contract

An offer is a statement or act by the offeror to the offeree promising to perform or refrain from performing some act.

The three required elements for a valid offer include:

Intention $-$ The offeror must have a serious intention to enter into the agreement. If Lorenzo says, "I am thinking about selling my car for $$10,000,,$ he is not displaying sufficient intent to make an offer.

Definiteness $-$ The terms of the offer must be sufficiently definite so the parties and a court could understand the terms. This includes who the parties are, the subject matter of the contract, and, if

Check Your Understanding: Offer

Total points: $--/2$

Attempts left: $2$

Which of the following is a valid offer?

Eric offers to buy Arun's house for $$775,000$ with no contingencies because Eric's lease ends in two months. Arun wants to think about it and six days later has not yet responded.

Arun tells Eric he will sell one of his houses for $$250,000$ by the end of the summer.

Eric offers to buy Arun's house for $$290,000.$ Arun says, $"$No$,$ but I will sell it to you for $$300,000."$ Eric seems to be upset, so Arun says he will sell it for $$290,000.$