Get a personalized walkthrough. Join office hours - every Friday. Attend.
Contract Glossary

Contract Basics

Offer and Acceptance

The two-step handshake at the heart of forming a contract: one party proposes terms, the other agrees to them.

Offer and acceptance are the first two ingredients of a contract. One party makes an offer (a clear proposal to do something on specific terms), and the other accepts it. Once acceptance is communicated, and consideration is present, a binding agreement is formed.

The details matter. A counteroffer is not acceptance, it is a new offer that the original side can accept or reject. Signing a contract is the clearest form of acceptance, which is why the moment of execution is usually the moment the deal becomes real.

Related terms

Consideration

The thing of value each party gives up, which is what makes a contract legally binding.

Agreement

A mutual understanding between two or more parties that creates obligations the law will enforce.

Execution

The act of signing a contract to make it legally binding.

Unlimited AI Contract Management & E‑Signatures for $11/mo

START FOR FREE

Free 14 day trial. No credit card required.