This article addresses topics related to what a contract offer is, the time frame for responding to a contract offer, the timing and location of contract formation, and the effectiveness of a contract. The information is provided for reference purposes.
1. What is a contract offer?
According to Article 386 of the Civil Code 2015, a contract offer is defined as follows:
A contract offer is the clear expression of an intent to enter into a contract and a commitment by the offeror to be bound by this offer with the identified offeree or the public (referred to as the offeree).
In cases where the contract offer specifies a time limit for response, if the offeror enters into a contract with a third party during the waiting period for the offeree’s response, the offeror must compensate the offeree for any resulting damages.
2. What is the time frame for responding to a contract offer?
According to Article 394 of the Civil Code 2015, the determination of the time limit for responding to a contract offer is stipulated as follows:
If the offeror specifies a time limit for response, the acceptance is only valid if made within that period. If the offeror receives the response after the specified time, this acceptance will be considered a new offer from the late responder.
If the offeror does not specify a time limit for response, the acceptance is only valid if it is made within a reasonable period.
In cases where the notice of acceptance arrives late due to an objective reason that the offeror knew or should have known, the acceptance remains valid unless the offeror immediately rejects the acceptance.
When the parties communicate directly, including by telephone or other means, the offeree must respond immediately regarding acceptance, unless the parties have agreed otherwise on a response time.
3. When does a contract offer become effective?
According to Article 388 of the Civil Code 2015, the effective date of a contract offer is specified as follows:
The effective date of a contract offer is determined as follows:
According to the time limit set by the offeror;
If the offeror does not set a time limit, the offer takes effect when the offeree receives it, unless otherwise provided by law.
Cases considered as the offeree having received the contract offer include:
The offer is sent to the place of residence if the offeree is an individual, or to the head office if the offeree is a legal entity;
The offer is entered into the offeree’s official information system;
The offeree becomes aware of the offer through other means.
4. Place of contract formation?
According to Article 399 of the Civil Code 2015, the place of contract formation is determined by the agreement between the parties; if the parties do not reach an agreement, the place of contract formation will be the residence of the individual or the head office of the legal entity that made the offer.
5. Contract formation time?
According to Article 400 of the Civil Code 2015: A contract is considered to be formed at the time the offeror receives the acceptance of the offer.
If the parties agree that silence will be considered as acceptance of the contract offer within a specified period, the contract is formed at the end of that period.
The time of contract formation by verbal agreement is when the parties reach an agreement on the contract’s content.
The time of contract formation by written agreement is when the last party signs the document or provides another form of acceptance as indicated in the document.
In cases where the contract is initially formed verbally and later formalized in writing, the time of contract formation will be determined according to the provisions in paragraph 3 of this article.
6. Effectiveness of the contract?
According to Article 401 of the Civil Code 2015: A legally concluded contract takes effect from the moment it is formed, unless otherwise agreed by the parties or provided by law.
From the moment the contract becomes effective, the parties must perform their rights and obligations as agreed. The contract can only be amended or canceled based on the agreement of the parties or according to legal provisions.
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