In contract negotiations, who is referred to as the person making the offer?

In contract negotiations, the individual who is making the offer is referred to as the offeror. This term is crucial in understanding the dynamics of the negotiation process. The offeror is the party that proposes the terms of the agreement to another party, known as the offeree. This relationship establishes the basis for the contractual obligations that will be formed once the offeree accepts the offer.

Identifying the offeror is essential because the responsibilities and rights associated with the offer depend on who initiates the proposal. For example, the offeror is typically the party who specifies the terms under which they are willing to enter into a contract, and they retain certain rights until their offer is accepted or rejected.

In a typical negotiation scenario, the offeree must consider the offer made by the offeror and decide whether to accept, reject, or counter the terms presented. Understanding these roles helps clarify how contracts are formed and facilitates effective communication and decision-making within negotiation processes.