Agreement Understanding an Offer An offer may be described as an expression to another of a willingness to be legally bound by the stated terms. Three features that must be present for the offer to be legally effective: 1. Statement by offeror containing stated terms. The statement must contain all the elements of the proposed agreement and be sufficiently certain. 2. Statement made to another person. The offer must be made to another legal entity. 3. Offeror indicates a preparedness to be bound. The offeror must be prepared to be legally bound upon acceptance by the offeree.