Definition - What does Offer mean?

An offer is a proposed agreement from one party to another. The party who receives the offer is free to accept or decline the offer depending whether or not he or she likes it. If the offer is accepted, then a legally binding contract can be drawn up, which can begin a formal agreement between the two parties. Once the contract is signed, each party must adhere to it, or else can be sued by the other for breach of contract.

Justipedia explains Offer

Offers are used in many different areas of business. They are used in real estate, insurance, medicine, manufacturing, shipping, etc. For example, a real estate agent may put an offer in to buy a person's house on behalf of a client. If the offer is accepted, the buyer will pay the seller for the house and the deed will be signed over to the buyer.

Offers serve an important function in business in that they help deals to be made. If offers did not exist, it would be very difficult for business arrangements to be made.

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