Arrange in sequence, the steps of formation of a contract.
A. Consideration
B. Proposal
C. Acceptance
D. Agreement
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → B, C, D, A
Here's a breakdown of each step:
- Proposal (B): One party (the offeror) makes a clear and definite offer to another party (the offeree).
- Acceptance (C): The offeree accepts the offer unconditionally and without any modifications.
- Agreement (D): When the offeror and offeree have agreed on all the essential terms of the contract, an agreement is formed.
- Consideration (A): Each party must provide something of value to the other party in exchange for their promise. This is known as consideration.