What is the key function of the person acting as the offeror in a contract?

The key function of the person acting as the offeror in a contract is to make a binding offer. In contract law, the offeror is the party that presents the terms of the contract to another party, known as the offeree, with the intention that these terms will form a binding agreement upon acceptance by the offeree. This means that the offeror lays out specific conditions under which they are willing to enter into a contractual relationship, thereby establishing the groundwork for negotiations to occur.

When an offer is made, it signifies the offeror’s readiness to be legally bound by those terms once accepted by the offeree. The clarity and definiteness of the offer are vital, as they determine if and when a contract will arise. Other functions, such as negotiating contract terms, reviewing offers, or enforcing contract terms, are secondary and usually occur after or as a result of the binding offer being accepted. Thus, the fundamental role of the offeror is to initiate the contract through the act of making an offer that, when accepted, will create legal obligations for both parties.