Arrange the stage of formation of contract in ascending order :
(A) Invitation to offer
(B) Promise
(C) Consideration
(D) Proposal
(E) Contract
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A), (D), (B), (C), (E)
Here's a breakdown of each stage:
- Invitation to offer: This is the initial stage where one party expresses interest in entering into a contract with another party. It's not a binding offer.
- Proposal: A proposal is a definite offer made by one party to another with the intention to enter into a contract.
- Promise: A promise is an acceptance of the proposal by the other party.
- Consideration: Consideration is the exchange of something of value between the parties to the contract.
- Contract: When a valid proposal is accepted by the other party and there is consideration, a contract is formed.
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