What Are the Two Parties of a Contract Called

When it comes to legal agreements, there are usually two parties involved: the party offering something (such as the sale of a product or service) and the party accepting that offer. These two parties are commonly referred to as the “offeror” and the “offeree”.

The offeror is the party who initiates the contract by presenting the terms of the agreement to the offeree. This party is typically the one offering something of value, such as a product or service. For example, a company offering a job to a potential employee would be considered the offeror in this situation.

The offeree, on the other hand, is the party who receives the offer and has the option to accept or reject the terms presented by the offeror. In our previous example, the potential employee would be considered the offeree.

It`s important to note that the roles of offeror and offeree can switch depending on the situation. For example, if a customer requests a specific product from a business, the customer would be considered the offeror and the business would be the offeree. In this case, the business would have the option to accept or reject the customer`s offer.

In most cases, the offeror and offeree must be capable of entering into a legal agreement. This means that both parties must have the mental capacity to understand the terms of the contract and have the legal authority to enter into such an agreement. For example, a minor or someone who is mentally incapacitated may not have the legal capacity to enter into a contract.

In conclusion, the two parties of a contract are typically referred to as the offeror and offeree. The offeror is the party offering something of value, while the offeree is the party who has the option to accept or reject the terms presented by the offeror. Understanding these terms is essential for anyone entering into a legal agreement.