Who is referred to as the party making the offer in a contract?

In the context of a contract, the party making the offer is referred to as the offeror. This term designates the individual or entity that proposes the terms of the contract to another party, known as the offeree. The offeror initiates the agreement by stating the specific terms they are willing to accept, laying the groundwork for the contract formation process.

Understanding this concept is crucial because the roles of the offeror and offeree dictate the dynamics of negotiation and acceptance in contract law. The offeror holds the power to express willingness to enter into a contractual agreement based on the presented terms, while the offeree has the right to either accept, reject, or counter those terms.

Other terms like contractor and negotiator do not specifically identify the party making the offer in a contractual situation. A contractor usually refers to someone who has entered into a formal agreement, while a negotiator implies a role in the process of discussion and arrangement, which is separate from the function of extending an offer. Therefore, the precision of terminology in contract law highlights the significance of the term "offeror" in identifying the party responsible for initiating the agreement.