An offer is a promise that is governed by specific terms which are enacted as conditional upon an act or the return promise given as an exchange for the promise or its enactment. Thus, an offer shows the willingness of a party to engage in a bargain, made so that the other party that is involved is justified in understanding that their participation or assent to the bargain is invited and will conclude it. Any party that presents an offer must provide a statement or present intent to engage in a contract. Therefore, there must be a definite proposal that outlines the specific terms and the communication of the offer to the prospective offeree. However, if any of these elements are absent, there is no offer to create the basis of a contract.
In the case of Wrench L.L.C and Taco Bell, there was an offer since the two parties had met to discuss the terms in which "Psycho Chihuahua" would be used as part of the marketing strategy for Taco Bell. Since Wrench L.L.C presented its terms to Taco Bell, it was a given promise as there were specific terms to govern the enactment of the promise upon act – which are the proposed terms Wrench L.L.C presented to the representatives of Taco Bell. Secondly, Taco Bell did not commit or show any form intent to engage in doing business with Wrench L.L.C – in any case, the company was clear that it did not accept the proposed terms by Wrench L.L.C; thus, was not willing to engage in any bargain with them. In addition to this, the offeror (Wrench L.L.C) did not get any assertion from Taco Bell suggesting that they had understood and agreed with the terms present and would be willing to conclude the bargain as presented. Furthermore, Taco Bell did not issue a statement or express their intention to engage in any contract with Wrench L.L.C. The actions by Taco Bell show that they had rejected the offer provided by Wrench L.L.C.
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The three elements that define an offer in common law include communication, commitment, and definite term. Communication means that the party presenting the offer (the offeror) must articulate their offer to the other party (the offeree) who may then chose to accept or reject the offer. Wrench L.L.C made an offer by discussing their proposed term to Taco Bell representatives, who were in a position to either accept or reject the terms. Taco Bell chose to reject the proposed terms.
Commitment describes the situation of whether the offeror, in their communication of offer, had the intention to be bound by the offer. Wrench L.L.C expressed its intent to be bound during its course of conduct; its proposed terms act as the explicit communication stating its binding position. During their meeting, Wrench L.L.C presented an invitation to Taco Bell to receive its offer by proposing its terms, which act as the contractual offer.
Definite terms describe the specific terms that govern the enactment of the promised act. The terms must include clear rules governing the deal such as; the price, method of acceptance and timing. Wrench L.L.C had presented the idea of the "Psycho Chihuahua" and discussed with Taco Bell representatives the terms that would govern the two parties if Taco bell accepted the idea of including "Psycho Chihuahua" in their marketing plan.
