ABSTRACT
Agreement is the first essential element of contract formation. A binding agreement involves a meeting of the minds (consensus ad idem) and a contract may be achieved by the acceptance of an offer.
Defining an ‘offer’
An offer may be described as a final statement or proposal by one person (offeror) to another person (offeree). The statement or proposal is usually made on certain terms and often follows a process of negotiation. In other words, an offer only exists when there is nothing further to negotiate – either the offer is accepted or it is rejected.
