In contract negotiations, the party who initiates an offer is called the

In contract negotiations, the party who initiates an offer is called the

• A. Offeree
• B. Bidding party
• C. Offeror
• D. Counterparty

Answer: (C)

In contract negotiations, the person who makes the initial proposal and sets out the terms is the offeror. The offeror starts the process by presenting what they are willing to do, at what price, and under what conditions. The other party who receives that proposal and can accept or reject it is the offeree. Once the offeree accepts, a contract can form. So, the initiator of the offer is called the offeror because they are the one who offers the terms that the other party can agree to. The offeree is simply the recipient who has the power to accept; terms like “bidding party” aren’t standard labels, and “counterparty” is a generic term for the other party rather than the initiator.

In contract negotiations, the person who makes the initial proposal and sets out the terms is the offeror. The offeror starts the process by presenting what they are willing to do, at what price, and under what conditions. The other party who receives that proposal and can accept or reject it is the offeree. Once the offeree accepts, a contract can form.

So, the initiator of the offer is called the offeror because they are the one who offers the terms that the other party can agree to. The offeree is simply the recipient who has the power to accept; terms like “bidding party” aren’t standard labels, and “counterparty” is a generic term for the other party rather than the initiator.