Offeree

Definition

An offeree is a person or entity to whom an offer is made in the context of contract formation. The offeree has the power to accept, reject, or counter the offer, which is crucial in determining whether a contract can be formed. Understanding the role of the offeree is key to grasping how offers are accepted and how mutual assent is achieved in contract law.

5 Must Know Facts For Your Next Test

1. The offeree must have knowledge of the offer for it to be valid; if they are unaware of it, they cannot accept it.
2. An offeree can only accept the terms as presented without modifications; any changes constitute a counteroffer rather than acceptance.
3. Acceptance by the offeree must be communicated clearly to create a binding contract; silence usually does not equate to acceptance.
4. If the offer includes a specific method of acceptance, the offeree must follow that method for their acceptance to be valid.
5. The offeree has the right to reject the offer, which means no contract is formed unless the original offeror decides to create a new offer.

Review Questions

• What happens if an offeree tries to change some terms of an offer?
  • If an offeree attempts to change any terms of the offer, it results in a counteroffer rather than acceptance. This means that the original offer is effectively rejected and cannot be accepted later unless the original offeror agrees to the new terms presented by the offeree. Therefore, it's crucial for an offeree to accept an offer as is if they intend to create a binding contract.
• Discuss the implications of an offeree's silence regarding an offer. When can silence be considered acceptance?
  • Typically, silence cannot be construed as acceptance of an offer. However, there are exceptions where silence may imply acceptance, such as in cases where previous dealings between parties establish that silence means consent. If the offeree has indicated that silence will serve as acceptance or if there is a duty to respond due to previous agreements, then silence could be interpreted as acceptance.
• Evaluate how an offeree's actions can impact the formation of a contract and what criteria must be met for their acceptance to be legally binding.
  • The actions of an offeree can significantly influence contract formation, as their acceptance must be clear and communicated effectively for it to be legally binding. Criteria that need to be met include that the offeree must have knowledge of the offer, their acceptance must mirror the terms set forth in the offer without modifications, and it should follow any specified method outlined by the offeror. Failure to meet these criteria can lead to misunderstandings about whether a contract exists.

Related terms

Offeror: The offeror is the individual or entity that makes the offer to enter into a contract, outlining the terms and conditions that the offeree can accept.

Acceptance:

Acceptance is the offeree's agreement to the terms of the offer, which creates a binding contract when communicated effectively.

Mutual Assent: Mutual assent refers to the agreement between parties to form a contract, typically established through an offer by one party and acceptance by the offeree.