What constitutes an offer in contract law?

In contract law, an offer must be a definite promise by the offeror that includes specific terms. This means that it clearly outlines what is being proposed, the parties involved, and the essential terms, such as consideration, price, and the subject matter of the contract. A well-defined offer provides the recipient with enough information to understand what is being proposed and to make a decision about whether to accept it.

Specificity strengthens the enforceability of the contract because it reduces ambiguity; both parties know exactly what is expected of them if the offer is accepted. An offer may include conditions or requirements that must be met, further clarifying the intentions of the parties involved.

In contrast, a suggestion made verbally or a casual remark about a potential deal typically do not meet the criteria of a formal offer due to their lack of specificity and intent to bind the parties. A proposal that lacks specificity fails to convey clear terms and may leave critical elements undefined, making it difficult to ascertain whether a contract has been formed, should the other party express interest.