What is the definition of an offer?

What is the definition of an offer?

• A. Manifestation of intent to negotiate
• B. Manifestation of intent to be bound
• C. A statement inviting negotiations with no commitment
• D. A promise to perform in the future

Answer: (B)

An offer is a manifestation of willingness to enter into a bargain on specific terms, such that acceptance by the other party creates a binding contract. The crucial point is the intention to be bound by the terms once accepted. If the speaker only expresses a desire to negotiate or invites others to submit terms, there is no offer because there is no commitment to be bound. A statement about promising to perform in the future lacks the present commitment to be bound upon acceptance, so it isn’t an offer either. Therefore, the defining feature is the intent to be bound, which makes the option stating a manifestation of intent to be bound the best fit.

An offer is a manifestation of willingness to enter into a bargain on specific terms, such that acceptance by the other party creates a binding contract. The crucial point is the intention to be bound by the terms once accepted. If the speaker only expresses a desire to negotiate or invites others to submit terms, there is no offer because there is no commitment to be bound. A statement about promising to perform in the future lacks the present commitment to be bound upon acceptance, so it isn’t an offer either. Therefore, the defining feature is the intent to be bound, which makes the option stating a manifestation of intent to be bound the best fit.