Offer and Acceptance Playbook

By contrast, “I might sell my bicycle for around $200” sounds like an opening for discussion. It does not clearly promise anything or establish a final price.

The Objective Test: Focus on What Was Communicated

Courts generally use an objective test. They ask what a reasonable person would understand from the speaker’s words and actions in context.

This means private, unspoken intentions usually do not control the result. Someone may later say, “I was only joking,” or “I never intended to be bound.” But if the person’s words and conduct reasonably looked like a serious offer, the court will examine that outward meaning.

When reviewing a statement, ask:

• Was the conversation serious or casual?

• Were the important terms stated?

• Did the speaker use firm language such as “I will sell” or “I promise”?

• Did the speaker set a deadline or explain how to accept?

• Would a reasonable person think a simple “yes” would complete the deal?

Context matters. The same words can mean different things depending on where and how they were used. A signed written proposal sent to a customer looks different from a rough idea mentioned during a brainstorming session.

Offer or Negotiation?

Negotiation is the process of exploring whether a deal can be made. During negotiation, people often use language that is incomplete, conditional, or open-ended.

Common signs that a statement is probably not yet an offer include:

• “Would you consider selling it for $500?”

• “I am asking $500, but I may be flexible.”

• “Let’s discuss the price.”

• “I plan to prepare a formal agreement later.”

• “Subject to approval by my manager.”

• “I might be willing to sell.”

These statements may show interest, but they do not necessarily show a final commitment. They leave room for further decisions or approvals.

Advertisements, catalogs, menus, and general price lists are also often invitations for customers to make offers rather than offers themselves. For example, a store display saying “Laptops: $700” usually invites a customer to bring the item to the register. The store may still need to confirm inventory, eligibility, or other terms.

However, a public statement can sometimes be an offer if it is specific, definite, and clearly promises a reward or exchange to anyone who performs the stated conditions. The key question remains the same: would a reasonable person see a final commitment or merely an invitation to begin talking?

Fact-Check Worksheet: Is This a Real Offer?

Use the worksheet below whenever you face a confusing statement. Do not decide based on one word alone. Consider the entire message and the surrounding circumstances.

Step 1: Record the Statement

What exactly was said or written?

__________________________________________________________________

__________________________________________________________________

Who made the statement

__________________________________________________________________

Who received the statement?

__________________________________________________________________

Step 2: Identify the Terms

Write down every term that appears to matter. Do not assume that an unstated term is settled.

• What is being offered? __________________________________________

• What is the price or exchange? __________________________________

• Who must perform? _____________________________________________

• When must performance occur? _________________________________

• Where or how will performance occur? __________________________

• Are there conditions or approvals? ______________________________

If several important details are missing, the statement may be too indefinite to count as an offer. Not every detail must be written out in every situation, but the parties must have enough information to understand what agreement is being proposed.

Step 3: Look for Commitment

Underline or list the words that suggest a final promise:

__________________________________________________________________

__________________________________________________________________

Now list words that suggest continued discussion, uncertainty, or approval:

__________________________________________________________________

__________________________________________________________________

Which group is stronger?

My answer: _______________________________________________________

Why: ____________________________________________________________

__________________________________________________________________

Step 4: Apply the Reasonable-Person Test

Complete this sentence:

A reasonable person in the recipient’s position would probably understand this statement as...

__________________________________________________________________

__________________________________________________________________

Now complete the opposite view:

A reasonable person could instead understand this statement as...

__________________________________________________________________

__________________________________________________________________

Which interpretation is more persuasive? Identify the facts that support your answer, such as the wording, timing, document format, prior discussions, or conduct after the statement.

__________________________________________________________________

__________________________________________________________________

Practice Round: Classify the Statement

For each example, label the statement Offer, Negotiation, or Probably not enough information. Then explain your choice in one or two sentences.

Example 1

“I will sell you my bicycle for $250. You may accept by text before 6

End of chapter one. 5 more chapters in the full book.