Certified Residential Appraiser Practice Exam

What is considered an offer in a contractual context?

1. A statement expressing indifference to acceptance

2. A manifestation of willingness to enter into a bargain

3. A vague suggestion of future possibilities

4. A promise made without intention to follow through

The correct answer is: A manifestation of willingness to enter into a bargain

In a contractual context, an offer is defined as a manifestation of willingness to enter into a bargain. This means that one party clearly communicates their intent to engage in a legally binding agreement under specific terms. The key characteristic of an offer is its clarity and intent; it must convey that if the other party accepts the offer, the person making the offer is prepared to fulfill their obligations as outlined. This clear expression distinguishes an offer from other statements that may lack the requisite intent or specificity necessary to form a contract. For instance, statements of indifference or vague suggestions do not convey a firm intent to negotiate or enter an agreement. Similarly, a promise made without the intention to follow through does not constitute an offer because it does not aim to create binding obligations. Hence, the correct choice emphasizes the necessity of a clear intent to form a binding agreement as foundational for recognizing an offer in contract law.