What is the term for when one party indicates to another a willingness to enter into an agreement under specific terms?

The term for when one party indicates a willingness to enter into an agreement under specific terms is known as an offer. In contract law, an offer is a proposal made by one party to another, detailing the conditions and terms under which they are prepared to enter into a legally binding agreement.

For the formation of a contract, the offer must be clear and definite, outlining the essential terms so that the other party understands what is being proposed. Once an offer is made, it can be accepted, rejected, or countered by the other party. The clarity and intent behind the offer play a critical role in ensuring that both parties understand their obligations should the agreement be accepted.

Consideration refers to the value exchanged between the parties, which is essential for a contract but not the same as making an offer. Acceptance is the act of agreeing to the terms of the offer, and negotiation pertains to the discussion and potential modification of terms prior to reaching an agreement. Therefore, recognizing that an offer is the initial step in this contractual process highlights its importance in establishing a foundation for the agreement.