Understanding Offers in Business: Definition, Types, and Examples

An offer is a proposal made by one party to another with the intention of reaching an agreement or transaction. It typically includes the terms and conditions of the proposed deal, such as the price, quantity, delivery date, payment terms, and any other relevant details.

In business, offers are commonly used to solicit orders, sell products or services, or negotiate contracts. They can be verbal or written, although it is generally advisable to put offers in writing to avoid misunderstandings and provide a clear record of the terms.

For example, a company might make an offer to sell a product to a customer at a certain price, with a specific delivery date and payment terms. The customer can then choose to accept, reject, or counteroffer the proposal. If the customer accepts the offer, a legally binding contract is formed.