JD Next Practice Exam

Who is referred to as the offeree in a contract?

1. Person who makes the offer

2. Person to whom the offer is made

3. Person who negotiates the contract

4. Person who executes the contract

The correct answer is: Person to whom the offer is made

In a contract, the offeree is the individual or entity to whom an offer is made. This designation is essential because the offeree has the power to accept or reject the terms presented in the offer. The offeree holds a position of decision-making regarding whether to enter into the agreement based on the offeror's proposal. When discussing contracts, understanding the roles of the offeror and offeree is crucial. The offeror is the party that initiates the contract by proposing specific terms. In contrast, the offeree must consider these terms and make a decision on how to respond. This relationship highlights the dynamics of contract formation, where the acceptance by the offeree solidifies the mutual agreement and thereby creates a binding contract. Consequently, recognizing who the offeree is entrenches the foundational concepts of contract law, allowing for clearer discussions and interpretations of legal agreements.