Contract formation begins with a proposal. An offer is a manifestation of willingness to enter a bargain, made so that another person’s assent will conclude the deal.

Offers must be reasonably definite as to key terms and communicated to the offeree. Advertisements are often treated as invitations to negotiate rather than offers, though specific promises can cross the line. Offers may be revoked before acceptance unless an option contract or statute makes them irrevocable.

Counteroffers reject and replace the original offer. Lapse by time or death of a party can terminate power of acceptance. Careful language about what is required for acceptance prevents unintended contracts and clarifies when bargaining is still open.

• Proposal intending to form a contract upon acceptance
• Must be communicated and reasonably definite
• Revocable until accepted unless made irrevocable
• Terminated by rejection, counteroffer, or lapse