In the formation of every contract, there must be an offer made by one party and the acceptance of that offer by the other party. The principle of offer and acceptance ensures that there is:
- A meeting of minds or a mutual agreement (also known as consensus ad idem)
- A clear intention to create legal relations
- Certainty in the terms of the offer and acceptance
The moment the offeree communicates their acceptance, a legally binding contract is formed, and both parties are obligated to fulfill their promises as defined by the agreed.
an offer and acceptance different :
| 1. Offer | - Clear, specific, and complete terms
- Intention to create legal relations
|
| 2. Acceptance | - Unconditional agreement to the terms of the offer
- Communication of acceptance (silence cannot be treated as acceptance
|