What must each party to a contract do in relation to the offer?

For a contract to be valid and enforceable, one of the fundamental requirements is that both parties must clearly and unconditionally accept the terms of the offer. Acceptance must mirror the terms of the offer exactly, as any modification or negotiation introduces a counteroffer, which is a separate proposition that negates the original offer.

Acceptance is an essential element of contract formation; it signifies that the party agrees to the terms as stated, creating a consensus between the parties involved. This mutual agreement is what binds both parties to the terms of the contract, ensuring that each has a clear understanding of their obligations and rights under the agreement.

While negotiation and paperwork can be aspects of the contracting process, they are not mandatory to the point of constituting acceptance. Consideration, which refers to something of value exchanged between the parties, is also vital to contract legality, but it is not a requirement after acceptance—it occurs as part of the contract and is not a standalone step following acceptance.