Which of the following best describes an offer in contract formation?

• A. A clear proposal to enter into a contract with definite terms
• B. An invitation to negotiate terms
• C. A promise contingent on a condition without definite terms
• D. A mere expression of interest without intent to be bound

Answer: (A)

An offer is a clear proposal to enter into a contract on definite terms, made with the intent to be bound upon acceptance. It signals that the offeror is ready to enter into a binding agreement if the other party agrees. This is what makes it different from an invitation to negotiate, which invites discussion without creating a binding obligation. It also contrasts with a promise that depends on a condition but lacks definite terms, which leaves essential details unsettled, and with a mere expression of interest without intent to be bound, which has no power to create a contract upon acceptance. Therefore, the best description is a clear proposal to enter into a contract with definite terms.