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What are the three requirements that make an offer valid?

User Raj Joshi
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Final answer:

An offer must have clear terms, intent to create a legal agreement, and must be communicated to the offeree.

Step-by-step explanation:

In business, an offer refers to a proposal made by one party to another, expressing the intention to enter into a contractual agreement. To be valid, an offer must meet three requirements:

  1. Clear and definite terms: The offer must have specific and unambiguous terms, including the identification of the parties involved, the subject matter, and the terms of acceptance.
  2. Intent to create legal relations: The offer must indicate an intention to create a legally binding agreement between the parties.
  3. Communication: The offer must be communicated to the offeree, either directly or through a recognized mode of communication.

For example, if a business owner offers to sell a product to a customer at a specific price and communicates this offer to the customer, the three requirements for a valid offer are met.

User Shubham Chandel
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