An offeree is a person or entity who receives an offer in a contract negotiation. This individual has the power to accept, reject, or counter the offer made by the offeror. The offeree's response determines whether a legally binding agreement can be formed. In legal terms, the offeree must clearly understand the terms of the offer to make an informed decision. If the offeree accepts the offer, a contract is created, and both parties are obligated to fulfill their respective duties as outlined in the agreement.