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Related to offer: Invitation to treat
The offer is the price at which someone who owns a security is willing to sell it. It's also known as the ask price, and is typically paired with the bid price, which is what someone who wants to buy the security is willing to pay. Together they constitute a quotation.
A commitment to do some act,usually to buy or sell something,upon specified terms which, if accepted, would create an enforceable contract. The person making the offer is the offeror; the person receiving it is the offeree.Some important concepts include
• An offer may be withdrawn at any time before it is accepted, unless the offer by its terms stated it would be irrevocable for a specified period of time or other conditions.
• The mailbox rule states that if an offer is made via the mail, or if an offer does not limit acceptance to some vehicle other than the mail, then it may be accepted by mail. If so, then acceptance is effective when it is placed in the mail, not when received by the offeror. As a result, the offer may not be withdrawn once acceptance has been placed in the mail.
• The Uniform Computer Information Transactions Act provides that e-mail offers are accepted when the return e-mail has been received by the offeror, not when it is sent.
• Some states have held that fax transmissions of acceptance are effective when faxed.
• An offer that is “accepted,” but with changes in some of the terms or conditions, is a counteroffer and is not an acceptance. A counteroffer is a new offer that must be accepted or rejected. The old offer may not be resurrected at that point.
• Aproperty auctioned without reserve is an offer that may not be withdrawn. Unless specified otherwise, all auctions are presumed to be with reserve and the property may be withdrawn at any time before acceptance.
• Upon receiving an offer from a potential purchaser, an agent is obligated to transmit it to the client as soon as possible, even if the agent thinks it is a poor offer that will not be accepted. Further, an agent may not retain an offer until receipt of another, in order to present them together, unless the client has given specific instructions to act in that manner.