Certified Professional Contract Manager (CPCM) 2025 – 400 Free Practice Questions to Pass the Exam

A legally binding offer is characterized as a written promise that becomes a contract upon acceptance. For an offer to be considered legally binding, it must demonstrate intent to create a legal obligation and should include definite terms that are clear enough to be accepted or rejected. This means that when the other party accepts the offer, it results in a contract that is enforceable by law, provided that all other necessary elements of a contract (consideration, capacity, and legality) are present.

In contrast, an informal proposal made verbally lacks the formal structure and intent to be binding, making it less likely to be recognized legally. A general expression of interest in collaboration does not provide the specifics needed for acceptance and therefore does not constitute an offer. Lastly, an advertisement for goods or services is typically seen as an invitation to treat rather than an offer, as it does not usually contain sufficient detail regarding terms of sale or an intent to enter into a legal agreement.