The offeror is the initiator of the transaction

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The offeror is the person who initiates the procedure for concluding a transaction. An individual or a legal entity can act as an offeror. For example, at the level of civil relations, the offeror may be a seller or a plumber who offers his repair services.

Goals and general concepts

The main goal of the offeror is not only to initiate the conclusion, but to conclude the deal.

The acceptor is the person who accepted the offer to conclude a contract and all its conditions.

Offer, as a rule, has a written form and contains the main terms of the forthcoming transaction. A striking example is a regular invoice for payment, which contains:

• goods that are planned to be purchased by the acceptor;
• product quantity;
• price;
• payment deadline.

The invoice may even contain information about the container or packaging, payment terms, for example, 50% prepayment.

Historical background

Offer, or offero, translated from Latin - an offer. The offer itself must contain conditions that will allow the deal to be closed. Accordingly, the meaning of the word "offerer" is the person making the offer.

Distinctivefeatures of the offer and its concept

The terms "offer" and "offer" are inextricably linked. The offer must be specific and fully reflect the desire of the offeror that he is ready to conclude a deal on certain conditions, as well as:

• if the offer is withdrawn at the time of its submission, then it is considered not accepted;
• until the moment of acceptance within the agreed period, the offer cannot be withdrawn if the document itself does not contain other conditions;
• acceptance on other terms than provided by the offer is considered a refusal and acceptance of another offer.

Timing

The offer should usually contain a deadline, for example, until what date the offer is valid or how long it takes to pay in order to accept the transaction. If there are no violations of the terms that the offeror stipulated (we considered the meaning of the word), then the contract is concluded, and the offer is considered accepted.

In cases where the term is not specified, it all depends on the form of the offer. If the offer is oral, then the acceptor must express his consent or disagreement at the same moment.

If the offer is written, but does not contain terms for its acceptance, then the generally accepted term for sending and returning, the time for considering the offer, should be taken into account. If within this period the offeror decides to withdraw his offer, then the acceptor, having accepted it, but did not notify the first one about it, has the right to demand compensation for the losses incurred.

The response to the offer may come late, and if at this moment the offeror has changed his mind or revised the terms of the offer, he has the right to inform the acceptor that the deadlinethe offer has expired and the contract cannot be concluded on the previous terms. If the acceptor does not respond in any way, then this is considered a refusal.

Types of offer

The following types of offer are distinguished:

• Public offer.
• Firm, that is, transferred to a specific partner, who undertakes to accept it at a certain point in time, after which the transaction will be considered concluded.
• Free, offers to put forward a proposal to conclude an agreement to several partners at once. Such a document does not imply a binding acceptance and does not require any response from the acceptor. In fact, such a document is only an invitation to negotiations.
• Irrevocable. In this case, the offeror means a person who does not have the right to withdraw his offer. As a rule, this type of offer is used in the banking sector.

Public offer

It is assumed that the deal can be concluded by exchanging documents. For example, the offeror is the person who transferred the commercial offer to the acceptor. The offer stipulates all conditions, from cost and quantity to delivery terms. In this case, it is not necessary to sign an agreement, it is possible that an additional invoice will be issued. This form of relationship is most often found in online stores. For example, the buyer independently places an order on the seller’s website, pays for it and receives the goods. This is a public offer, that is, an offer through the media.

Bank guarantee

The offeror is the person who wantsconclude a deal, but in some cases a bank guarantee is required from him. In this case, the guarantee of the offer will be a bank guarantee, which is designed to confirm the inviolability of the intentions of the offeror. The guarantee is submitted together with the offer in order to:

• guarantee that the offer will not be withdrawn before its end;
• the purchase order or work order was unequivocally accepted, after that the offer was accepted.

A bank guarantee is normally required for tenders and is limited to the date of conclusion of the contract.

Example of writing an offer

Company Form

Offer for the supply of goods

Address, his position and details of the legal entity

Ex. №, date

About product delivery

Thank you for your enquiry, and let us know that we can offer … product…:

- quantity;

- cost;

- terms of delivery;

- timing.

Our offer is valid until … (date).

Respectfully, Director of JSC "Offerer" signature full name with full name.