How clear must a valid offer in a contract be according to Arizona law?

Under Arizona law, for an offer to be considered valid, it must be clear and definite in its terms. This requirement ensures that all parties have a mutual understanding of their rights and obligations under the contract. A clear offer identifies the essential elements of the contract, such as the subject matter, price, and quantity, allowing the offer to be accepted without further negotiation or ambiguity.

This clarity is crucial because it minimizes misunderstandings and disputes regarding the terms of the agreement. If an offer is vague or open-ended, as suggested in the first choice, it cannot form the basis for a binding agreement since the parties do not have a mutual agreement on the essential terms. Similarly, general terms that lack specificity do not meet the standards for a clear offer, nor can an offer be ambiguous based solely on oral communication, because clarity is paramount in ensuring the enforceability of the contract.

Therefore, the requirement for clarity and definiteness in an offer ensures that both parties are on the same page, which is vital for contract formation and enforcement under Arizona law.