Contract Termination
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The Offer
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An offer under the laws of contracts is something that creates the power of acceptance in another person. The person who makes the offer to another is called the offeror. The person who possesses the power of acceptance is the offeree.

To be a valid offer, there must be a clear expression of a commitment to enter into a contract, supported by definite and certain terms. Furthermore, the terms of the offer must be communicated to the offeree such that the power of acceptance is created. Let’s use a hypothetical to illustrate this concept.

Let’s assume that Amy and Bob are neighbors in a suburban area. Amy approaches Bob and says that she’ll paint Bob’s house on Saturday at 9:00 a.m. and have it finished by 5:00 p.m. that evening, only if he will pay her $500 on that same day. This is an example of a clear and definite offer. If Bob accepts Amy’s offer, and she performs as she promised to do, he’ll be legally obliged to pay her $500 on Saturday.

Now, let’s take a look at how an offer can be terminated by the person making the offer.