What is typically the first step in forming a legal contract?

The formation of a legal contract typically begins with the offer. This step is crucial because a contract is defined as an agreement between two or more parties that creates mutual obligations enforceable by law. The offer involves one party proposing specific terms to another, indicating their willingness to enter into a binding agreement under those terms.

This initial offer must be clear and definite, outlining the key components such as what is being offered, the price, and other essential terms. An offer sets the stage for the next steps in contract formation, which include acceptance, negotiation, and mutual agreement on the terms. Without a clear offer, there cannot be a legally enforceable contract, as the other party would not have the necessary framework to accept or negotiate the terms.

The process of completion of negotiations, acceptance of the offer, and review of terms follows the initial offer, making the offer the fundamental first step in contract formation.