Offer and Acceptance Theory

Offer and Acceptance Theory is a fundamental principle in contract law that describes how a legally binding agreement is formed. An offer is a clear proposal made by one party to another, expressing the willingness to enter into a contract. Acceptance occurs when the other party agrees to the terms of that offer. For a contract to be valid, the offer must be specific, and the acceptance must be unconditional and communicated back to the offeror. This process ensures that both parties have a mutual understanding and agreement on the terms of their arrangement before it becomes enforceable.