Offer and acceptance are two fundamental elements required to form a legally binding contract.
Offer: An offer is a clear, unequivocal, and definite proposal made by one party (offeror) to another party (offeree). The offeror expresses an intention to be legally bound by the terms and conditions set forth in the offer. An offer can be made in various forms, including oral, written, or even implied by conduct, depending on the circumstances. The terms of the offer should be specific and unambiguous so that the offeree can understand what is being proposed. It should include the essential terms of the contract, such as the subject matter, price, quantity, and any other significant terms.
Acceptance: Acceptance is the offeree's positive and unqualified agreement to the terms of the offer. In other words, it is the offeree's willingness to be bound by the terms proposed by the offeror. Acceptance must match the terms of the offer exactly and without any conditions or modifications. If the offeree makes changes or additions to the offer, it is considered a counteroffer, not an acceptance. Acceptance can also be communicated in various ways, including orally, in writing, or through conduct. However, it is crucial that the mode of acceptance is consistent with the method specified in the offer or, if no method is specified, a reasonable method.