For a contract to exist one party must have made an offer and the other party must have accepted it. Once the acceptance takes effect, a contract will usually be binding on both parties and the rules of offer and acceptance are usually used to pinpoint when a series of negotiations has passed that point in order to decide whether the parties are obliged to fulfill their promises.
The person making an offer is called the offeror and the person to whom the offer is made is called the offeree. A communication will be treated as an offer if it indicates the terms on which the offeror is prepared to make a contract such as the price of the goods for sale and gives a clear indication that the offeror intends to be bound by those terms if they are accepted by the offeree.
In most cases, an offer will be made to a specified person. However, offers can be addressed to a group of people or even to the general public.

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