Reading: (CU2 M1) Contract Formation: Offer and Acceptance
Note the importance of timing in determining when and whether an offer has been accepted. When an offer is made, a promise is made. However, an offer cannot be enforced until it is accepted. Oftentimes, there is a delay between the offer by one party and the acceptance by another. Ask yourself what happens if during that delay the person making the offer changes his or her mind? Also, note that what appears to be an offer may only be an “invitation to bargain” rather than an offer that can be accepted.
Make sure you understand that consideration is not the same as money or payment. By saying that a contract requires consideration, the law is simply requiring that a party give up something to which it is otherwise entitled.
Simply put, in general the law of contracts requires that there be a meeting of the minds between parties to a contract. This relates closely to the discussion of offer and acceptance. Keep in mind that for a contract to be valid, the mutual assent discussed in relation to offer and acceptance means that the parties must appear to be agreeing to the same thing
Please read The Legal and Ethical Environment of Business: “Chapter 6 starting at the section that discusses CONTRACT FORMATION” (Links to an external site.)Links to an external site. (Section 6.1) (PDF).