What constitutes an offer in contract law?

In contract law, an offer is primarily characterized as a proposal made by one party to another, indicating a willingness to enter into a legally binding agreement upon acceptance by the other party. This proposal must be communicated clearly and must demonstrate the intent of the offering party to be bound by the terms expressed if the other party agrees to them.

An offer requires specific terms that outline what is being promised, making it distinct from a general inquiry about interest or mere discussions about potential agreements, which do not signify an intent to create a binding contract. This ensures that both parties understand the essential elements of the deal, including what is being exchanged, the obligations of each party, and any deadlines for acceptance. Therefore, the nature of the proposal in this context highlights its significance in forming the basis for a contract.

In contrast, a verbal agreement alone does not qualify as an offer unless it meets the criteria of clarity and intent. Furthermore, a condition that must be met does not constitute an offer; rather, it may describe a term or requirement that is a part of the overall contract once the offer is accepted. Thus, the definition of an offer as a proposal made by one party to another is fundamental in establishing the formation of a valid contract in law.