IndexOfferAcceptanceConsiderationThe designation of the contract is to create legal relationships. A contract is the provision of products or services that represents a definitive written agreement between two parties and is generally considered a business transaction. Most importantly, when you have signed an agreement that has been given by other parties, the contract should have rights and obligations recognized and enforceable by law. In other words, if the contract is not agreed upon by the contracting parties then you will have the right to sue the other party. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essayAccording to the basic principles of contract, you can only refuse it when you did not intend to enter into a legally binding contract unless you enter into this contract. In most cases you can see the word subject to contract. This word has a legal meaning, but this document does not mean that you have entered into the contract unless the parties sign such a contract. The contract can be terminated upon conclusion. In the event of a dispute between two parties, the creation of a binding contract serves to ensure that the contract is carried forward by the person who wishes to rely on the contract. The contract basically requires an offer, acceptance and examination to make it a legally binding document. OfferAn offer is the first important step in the contract formation process. This agreement involves engaging one person (the "bidder") with another (the "bidder"). When the person making this offer (the offeror) is willing to enter into a contract at a certain term and see if the power of the term can attract the offeree to accept the offer. The offer must be communicated. By instant, in writing, orally or by conduct. An offer must be distinguished from an “invitation to treat”. To distinguish an offer, courts look for three requirements. First, the recipient must focus on the implications of the contract. Second, they look for particularity, or specificity, in the terms of the alleged offer. Third, they need to check whether the offer was communicated to the recipient. Acceptance There is no contract between the parties until they consent or agree to the terms of the offer. For the rest, the contract must be inadmissible and have unconditional consent to the proposal, otherwise it is equivalent to a counter-proposal. Most acceptance occurs orally or in writing. However, even less does the acceptance of the contract apply by conduct, unless the contract allows the acceptance and the fulfillment of the contractual obligations to be performed simultaneously. Consideration The offeror must provide something of value, promised by the offeror in exchange for the recipient so that the parties can enter into an agreement. The word "in exchange" means that the parties have something in consideration for each other. In a practical context, money, goods and services are the most common examples of exchange. There are three main rules to consider. Please note: this is just an example. Get a custom paper from our expert writers now. Get a custom essay the fee does not have to be adequate but it must be sufficient. The consideration must depart from the promise. The consideration must not be passed. For example, the price set by the bidder in the contract is lower than the market price, so the bidder may be turned away from the contract because the seller was unable to provide the price the buyer needed. This contract does not have.