Offer and acceptance forms are used to give a written explanation of an offer to contract and document the acceptance of those exact terms. Putting this information in writing decreases the opportunity for confusion among the parties and provides documented evidence if a dispute arises.
Offer and acceptance are the basis for any contract. The offer represents the willingness and intention of one party to enter into a contract for some service or product. The offer form includes all details and conditions of the offer. It is then presented to the accepting party for consideration.
The accepting party decides whether to accept or deny the offer. If the party does not agree with all details of the offer, he or she can suggest new or additional terms. This creates a counter offer. If the accepting party agrees with all terms, he completes an acceptance form and returns it to the offering party. This creates a binding contractual agreement.
If one or more parties do not perform as agreed under the contract, the conflict may go to court. The judge reviews the offer and acceptance form to establish the terms of the agreement and make a legal determination about the actions of the parties.