Which party to a contract is defined as the one who promises to give something in return for a promise or act by another party?

• A. Offeror
• B. Offeree
• C. Counteroffer
• D. Acceptance

Answer: (A)

In contract formation, the party who initiates the bargain by promising to give something in return for the other party’s promise or performance is the offeror. The offeror starts the process by presenting the terms of the deal and promising value in exchange for the other party’s commitment or action. The person to whom the offer is made is the offeree, who can accept to form a binding contract, reject, or propose a counteroffer. A counteroffer would come from the offeree, and acceptance would occur when the offeree agrees to the original terms. So the correct answer is the party who makes the offer—the one promising to give something in return.