Who is referred to as the party that makes an offer in a contract negotiation?

In the context of contract negotiation, the party that makes an offer is referred to as the offeror. This term is central to understanding how agreements are formed in contract law. The offeror proposes terms to another party, known as the offeree, who may accept, reject, or counter those terms.

When an offer is made, it indicates the offeror's willingness to enter into a contract under specific conditions, and it creates the potential for a binding agreement if the offeree decides to accept those terms. This dynamic is foundational to the negotiation process, as it establishes the initial framework for the contract.

In contrast, the offeree simply receives the offer and has the option to respond to it. The roles of agent and principal relate more to authority and representation in legal transactions but do not specifically pertain to the creation of an offer within contract negotiations. Understanding these roles is essential for grasping how contracts are formed and negotiated in legal contexts.