OFFER IN A CONTRACT In any contract there must be two parties where one party has an offer while the other party accepts the offer. An offer in a contractis made by a person who proposes the terms of an agreement. Offer is a communication that normally gives rlmusicservices the party power to close the contract. A person to whom the offer is made is known as an offeree. Offer is the element of the contract and it is normally the first step. An offer in a contract can be signified by the gestures, words or act.