Offer Consideration Acceptance Definition
When you make an offer to purchase something, you are making a contractually binding commitment. The other party is then free to accept or reject your offer. If they accept, you have a legally binding agreement.
If you’re making an offer to purchase a home, for example, you’ll likely put down a good faith deposit, also known as earnest money. This shows the seller that you’re serious about buying the home and it’s considered part of your offer. The seller can then accept or reject your offer.
If they accept your offer, you’re both obligated to follow through with the sale. If they reject your offer, you’re free to walk away from the deal and get your earnest money back.
