A proposal made by one party (the offeror) to another party (the offeree) indicating a willingness to enter a contract. The offer sets out the terms upon which the offeror is willing to enter into contractual relations with the offeree. In order to be accepted, the offer should not be too vague; If the offer is accepted, each party must know what their rights and obligations are (David Kelly, Ann Holmes, Ruth Hayward, 2005).The agreement of the offeree to be bound by the terms of the offer.
Acceptance may be in the form of express words, either oral or written, or it may be implied from conduct. The acceptance must be clear and absolute and without conditions attached. The offer must be accepted before it is withdrawn. An offer can be withdrawn before acceptance unless one of the terms of the offer is that it will remain open for acceptance until a specified time.The agreement must create a legal obligation, besides offer and acceptance; both the parties must have an intention to go to the court of law, if the other party does not meet his promise.
Normally, in social agreements there is no intention to go to the court of law but in commercial agreements it is presumed that there is an intention to go to the court of law.
