What is the offer? Definition, features and rules

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2020-06-23 04:20:18

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The Term from the title of the article we constantly encounter in business and in everyday life. Especially this word is full of all sorts of promotional offers. But what is the offer - in simple words? In the article we analyze in detail the concept, making it simple and understandable for the reader.

What is the offer?

A Word formed from the Latin. offero, which means "offer". The offer is an offer made on the transaction. It must be listed the important points of the future Treaty. And how could it be addressed to a specific person and other persons - a restricted or unlimited.

So what is it in simple words? The offer is a written or verbal offer to buy something from her addresser, sender. Important points:

  • The subject of the proposal.
  • Product Price.
  • The Timing of consent.
  • The Rights of each party.
  • Regulations governing the transaction, etc.

This word is also associated with other, also a bit strange - "accept". What does it mean? Accept - to accept the offer, her offer. Expressing their approval, acceptor (or the group of acceptors) accepts to conclude a contract for fixed it (offer) conditions. In turn, the person who has issued (sent and published) the offer, is obliged to conduct a transaction with the acceptor.

what is the offer

We Now turn to the formal definitions of the term.

The law

Contract offer - what is it in simple words, we are apart. Now let's see how this concept determines legislation of the Russian Federation.

According to section 1 of article 435 of the civil code: the offer - the offer that is directed to one or more specific addressees, definitely expresses the intention of the person who published it, to consider itself concluded the contract with those who accept the offer of the acceptor. The offer must contain all key terms of the agreement, as well as other important information for the counterparty.

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According to the article 11 of the Federal law "On advertising" goes as follows: if the Russian Civil code recognizes any advertisement offer, such offer is valid for 2 months from the date of exit ads, banner, video, etc., if it is not specified other terms.

It is Also important to bear in mind the Vienna UN Convention of 1980, including that signed by the Soviet Union. Russia, thus, will be his successor. This document is useful in resolving disputes when the proposer and the accepter are citizens of different States.

public offer

Offer in other countries

If we turn to European legislation, there are a few other requirements. What is the offer? This proposal, which reflects all the essential terms of the future Treaty. When the sale is, for example, the subject of trade and its price.

And what is the offer in Anglo-American law? It's not so much a specific how many determinate sentence. In other words, the recipient must be able to understand all important terms of the contract, even if the offer they are not specified. For example: not stated price. However, if the recipient has been specified, the goods he sold at a "reasonable cost".

Simple example

To the reader fully-formed in my head the puzzle, here is one simple and distinctive sample offer.

The Young man offers his girlfriend to marry him. While not a joke: the guy bought the ring, gathered the relatives, followed all the accepted customs and traditions.

The Girl in this situation and to agree and refuse. But the young man back his words, mind can not. Of ethical principles, he is obliged to marry the girl after his proposal. Of course, if this desire is mutual.

If you convert this situation in the business, you get a pretty vivid example of the offer.

Key features offers

All proposals of the offer have the following features in common:

  • A set of future conditions of the agreement.
  • The Intention of the Offeror to conclude a contract on the future purchase of its goods and products.
  • Absence of ambiguity and uncertainty - conditions of the offer clear and understandable to each party.

As for the invitation to make a deal, to offer the service or product it has the following features:

  • Specify the names offered for sale.
  • Published information about the price and quality of these items.
  • Be Sure to specify the period during which the recipient may send your acceptance (accept the deal).
    Oferta what it is in simple words

About the entry into force of the

It is Important to know how does the legislation regulate the implementation of this proposal offer is in effect. This information contain article 440, 441 Russian GK. It's simple: a contract is concluded immediately after the person-the addressee has agreed to the terms of the offer.

Silence is acceptance (consent) is not considered! Often, to avoid any omissions, in the offer indicate the order of agreement.

And if we turn to American law, we see that in this country, operates a so-called "mailbox rule". That is, the contract will be concluded at the moment when the acceptor has mailed a letter expressing its consent toInbox sent the offer. Or, in a modern way, - said approval message to the e-mail offer.

offer sample

What can we offer?

What is the offer? This term is hidden a few types of sentences. Let us briefly consider them:

  • The Public offer. The proposal going to the public. It also contains all key terms of the agreement. The proposer (the person issuing the offer, its Issuer) in absentia agrees to enter into a contract with anyone who will respond to his offer. Therefore, the accepter has the right to demand from him the fulfillment of the obligations set forth in the offer. By the way, is the most common form of this proposal.
  • A Free offer. These include proposals sent to more than one expected buyers. Distributed by the Offeror for the purposes of preliminary market research.
  • Firm offer. The proposal, which is sent to only one potential buyer. And it necessarily includes a period during which the Offeror is obligated to commit an act of sale. If at this time the addressee will come to an acceptance, the transaction is automatically committed.
  • Irrevocable offer. This term means the conclusion of the contract to the Offeror at specified conditions with everyone without the possibility of revocation or cancellation of previously posted suggestions. Mainly used by corporations-shareholders in the invitation to repay, repurchase securities in the direction of its shareholders.
    offer

Read More on public offer

Public type of offer: this offer is for all who will respond. At the same time, placing, the Offeror should be aware that he has no right to prefer any one face at the conclusion of the contract. With the exception of cases stipulated by the law.

St. 437 of the civil code specifies three important and obligatory for all public offers:

  1. A Proposal for concluding a contract must reflect all material terms of the latter.
  2. All the recipients should be clear that the Offeror has manifested the intention to conclude the contract of purchase and sale.
  3. The Transaction will take place between the proposer and the person who accepts without reservations the expressed proposition.

Paragraph # 1 of this article, also by default, calls the public offer the following (unless otherwise contained in the offering):

  • Items on the shelves.
  • Demonstration of samples of products in printed, virtual directories.
  • Products, located in specialized points of sale.
  • Windows.
  • List products in the Internet markets.
  • Menu indicating the dishes in cafes and restaurants and so on.

Public offer-the sample includes:

  • Consent to the processing of personal information about the customer (what).
  • Warranty obligations and deadlines.
  • Payment Procedure names.
  • The Ability to deliver the goods.
  • Order the return of defective, does not fit the product.
  • Claims from customers, disputes in court.
    offer services

The contract

Because often both parties (the Offeror and the accepter) can be present in one place at the time of the transaction, the method of its conclusion, it becomes a simple acceptance.

The agreement is similar to the standard: identifies counterparties, the subject about which you are writing the document, the obligations of the parties, the methods and procedure of payment, terms of the response to the offer, Bank details and signatures of the parties. It is concluded when the action which we recognized in advance the acceptance.

The offer and advertising

Often when looking at or listening to advertising, we meet the annoying "offer a public offer is not". What does this mean? Despite some similarities of the proposals, international law does not equal advertising to the offer.

According to the Russian Civil code (article 437, paragraph 1) advertising is the readiness to accept an invitation to bargain, negotiate. Thus, the commercial offer will not always be offer. It features a free presentation, no specific validity dates, and so on. You can't force the seller to sell you the goods under the terms specified in the advertising leaflet, if this paper does not say that it is a public offer (civil code, article 435).

However, in world practice there is one "but". If the advertisement contains the information that introduces consumer confusion regarding the price of the object sold, it can be considered as the offer. In other words, the seller, the manufacturer is obliged to conclude an agreement with buyer on the terms which he has specified in its proposal.

Notes and offer

The offer provider is not the only this proposal. Is it being used by issuers. In this area offer is the opportunity for a pre-defined price to repay this type of securities.

transfer agreement

For long-term bonds offer - the means by which it becomes possible regulation of yield and the Issuer and the investor. Sometimes the amount of payments undercoupons may be lower than the market value of the securities. So the Issuer improve its profitability.

The date of the offer of bonds is always set in advance and cannot change. With such capacity, the Issuer adjusts the interest rate risk, and shareholder loan. The cost of the buyout offer is the amount for which the negotiations came both parties (investor and Issuer). It can be both above and below the market price of the bond. The purchase order is always determined by contract concluded between Issuer and shareholder.

Here we dismantled on all sides that is offer. More than just today extended its public form, which it is important to distinguish from conventional advertising.


Article in other languages:

AR: https://tostpost.com/ar/business/22840-what-is-the-offer-definition-features-and-rules.html

BE: https://tostpost.com/be/b-znes/40253-shto-takoe-aferty-vyznachenne-asabl-vasc-prav-ly-skladannya.html

DE: https://tostpost.com/de/business/39797-was-ist-das-angebot-definition-merkmale-und-regeln-zur-erstellung.html

ES: https://tostpost.com/es/centro-de/39526-qu-es-la-oferta-definici-n-caracter-sticas-y-reglas-de-elaboraci-n-de.html

HI: https://tostpost.com/hi/business/24466-what-is-the-offer-definition-features-and-rules.html

JA: https://tostpost.com/ja/business/22384-what-is-the-offer-definition-features-and-rules.html

KK: https://tostpost.com/kk/biznes/40636-oferta-degen-m-z-ne-any-tamasy-erekshel-kter-zh-ne-zhasau-a-idalary.html

PL: https://tostpost.com/pl/biznes/42506-co-to-jest-oferta-definicja-cechy-i-zasady-tworzenia.html

PT: https://tostpost.com/pt/neg-cios/42135-que-tal-a-proposta-defini-o-caracter-sticas-e-regras-de-elabora-o-de.html

TR: https://tostpost.com/tr/business/37200-ne-b-yle-bir-teklif-tan-m-zellikleri-ve-kurallar-olu-turmak.html

UK: https://tostpost.com/uk/b-znes/41139-scho-take-oferta-viznachennya-osoblivost-ta-pravila-skladannya.html

ZH: https://tostpost.com/zh/business/40341-what-is-the-offer-definition-features-and-rules.html






Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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