For an offer to be legally binding, it must meet certain requirements. These requirements ensure clarity, intention, and mutual agreement between the parties involved.
- Intent to create legal relations: The offeror must demonstrate a clear intention to enter into a legal contract. This means that the offer is not made casually or in jest but with the genuine purpose of establishing a legally enforceable agreement.
- Definite and certain terms: The offer must include specific and definite terms that clearly outline the essential elements of the contract, such as the subject matter, price, quantity, and any other important details. Vague or ambiguous offers may not be enforceable as they lack the necessary clarity for a mutual understanding.
- Communication of the offer: The offer must be effectively communicated to the offeree, either verbally, in writing, or through conduct. The offeree must be aware of the offer and its terms in order to consider accepting it. Generally, an offer cannot be accepted if the offeree is unaware of its existence.
- Serious and unequivocal intention: The offer must be made with a serious and genuine intention to be bound by the terms of the offer. It should not be a mere expression of interest or an invitation to negotiate. The offeror must convey a clear willingness to enter into a contract upon acceptance by the offeree.
- Revocation of the offer: Until the offer is accepted, the offeror generally has the right to revoke or withdraw the offer. However, once the offeree communicates acceptance to the offeror, the offer becomes binding, and the offeror cannot revoke it unilaterally.
- Legal capacity and acceptance: Both parties involved in the contract must have the legal capacity to enter into a contract. This means they must be of legal age, mentally competent, and not under duress or undue influence. Additionally, the offeree’s acceptance of the offer must be unconditional and in accordance with the terms of the offer.
