Answer:
The offeror proposes the terms of a contract; the offeree is the person to whom the offer is made and who can accept, reject, or counter it.
Explanation:
- Definition: Offeror = person who makes the offer. Offeree = person who receives the offer. (Correct spelling: “offeree”.)
- Power: The offeror has the power to set the terms and (normally) to revoke the offer before acceptance; the offeree has the power of acceptance, which (if valid) creates a binding contract.
- Acceptance: Only an acceptance by the offeree (unequivocal and in the required manner) will form a contract. A counter-offer by the offeree rejects and replaces the original offer (offeree becomes a new offeror for the counter-offer).
- Communication: The offer must be communicated by the offeror to the offeree; acceptance must be communicated to the offeror (subject to exceptions like the postal rule).
- Time and lapse: The offeror can limit the time for acceptance; if the time lapses, the offeree loses the power to accept.
- Exceptions: Option contracts, firm offers, or statutory rules can prevent revoke by the offeror; silence by the offeree generally does not amount to acceptance.
- Practical consequence: Liability to perform arises once the offeree properly accepts; before acceptance the offeror is not yet bound.
Example: A offers to sell a phone to B for $200 (A = offeror, B = offeree). If B accepts, a contract is formed; if B counters with $180, B becomes a new offeror for that counter-offer.