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Offeror

DEFINITION

Party that makes an offer.

EXPLANATION

The main element for a valid contract is that the parties that formed the contract have both mutually consented to its creation. Consent is typically created when one party makes an offer to another party, which the other party accepts. An offer made by the offeror indicates the party’s desire to enter into a contract. The submission of the offer is called the contractual intention. Some contracts contain terms that will remain open, such as conditions that once met place parties liable for the contract.

A real estate offer exists when the person who is offering to buy, the offeror, has communicated his or her intentions to the person who is offering the deal, the offeree. The terms found in the standard real estate forms will clearly highlight every component of the deal, such as buyer/seller name, purchase price, closing date, conditions, and other specifics

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